Source: PaxForex Premium Analytics Portal, Fundamental Insight
US Personal Income for July is predicted to increase 0.2% monthly, and Personal Spending is predicted to increase 0.3% monthly. Forex traders can compare this to Personal Income for June, which increased 0.1% monthly, and Personal Spending, which increased 1.0% monthly. The PCE Core Deflator for July is predicted to increase 0.3% monthly and 3.6% annualized. Forex traders can compare this to the PCE Core Deflator for June, which increased 0.4% monthly and 3.5% annualized.
The final US Michigan Consumer Sentiment for August is predicted at 70.7. Forex traders can compare this to US Michigan Consumer Confidence for July, reported at 81.2. The Final Current Conditions for August are predicted at 77.9, and Final Expectations are predicted at 65.2. Forex traders can compare this to Current Conditions for July, reported at 84.5, and Expectations, reported at 79.0.
The Final Canadian PPI for July is predicted to increase 0.1% monthly. Forex traders can compare this to the Canadian PPI for June, which was reported flat at 0.0% monthly.
The forecast for the USD/CAD turned bearish after price action failed to record a higher high and struggled with resistance. Traders should account for a rise in volatility as bulls and bears fight for control. The Tenkan-sen ascends but is prone to a reversal, while the Kijun-sen remains flat. A bearish crossover is expected to fuel the next leg lower. After the CCI has corrected from extreme overbought conditions, it is likely to follow a choppy path lower. Can bears re-establish control and pressure the USD/CAD into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the USD/CAD remain inside the or breakdown below the 1.2640 to 1.2755 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2670
- Take Profit Zone: 1.2250 – 1.2330
- Stop Loss Level: 1.2830
Should price action for the USD/CAD breakout above 1.2755, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2830
- Take Profit Zone: 1.2950 – 1.3000
- Stop Loss Level: 1.2755
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