Source: PaxForex Premium Analytics Portal, Fundamental Insight
The final US GDP for the third quarter is predicted to rise by 5.2% quarterly. Forex traders can compare this to the second quarter GDP, which increased by 2.1% quarterly. Final GDP Sales for the third quarter are predicted to rise by 2.7% quarterly and Corporate Profits by 4.1% quarterly. Forex traders can compare this to second-quarter GDP Sales, which rose by 2.1% quarterly, and Corporate Profits by 0.5% quarterly. The final GDP Price Index for the third quarter is predicted to expand by 3.5% quarterly. Forex traders can compare this to the second quarter GDP Price Index, which rose 1.7% quarterly. The Final PCE for the third quarter is predicted to increase by 2.8% quarterly, and the core PCE by 2.3% quarterly. Forex traders can compare this to the second quarter PCE, which rose by 2.5% quarterly, and the core PCE by 3.7% quarterly. Real Consumer Spending for the third quarter is predicted to expand by 3.6% quarterly. Forex traders can compare this to Real Consumer Spending for the second quarter, which rose 3.6% quarterly.
US Initial Jobless Claims for the week of December 16th are predicted at 215K, and US Continuing Claims for the week of December 9th at 1,888K. Forex traders can compare this to US Initial Jobless Claims for the week of December 9th, reported at 202K, and US Continuing Claims for the week of December 2nd at 1,876K.
The Philadelphia Fed Manufacturing Index for December is predicted at -3.0. Forex traders can compare this to the Philadelphia Fed Manufacturing Index for November, reported at -5.9. Traders should focus on the CAPEX, Prices Paid, New Orders, and Employment sub-components.
The US Leading Index for November is predicted to drop 0.4% monthly. Forex traders can compare this to the US Leading Index for October, which contracted 0.8% monthly.
US Natural Gas Inventories for the week ending December 15th are predicted at -80B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending December 8th, reported at -55B cubic feet.
Canadian Retail Sales for October are predicted to increase by 0.8% monthly, and Canadian Core Retail Sales by 0.5% monthly. Forex traders can compare this to Canadian Retail Sales for September, which rose by 0.6% monthly, and Canadian Core Retail Sales, which increased by 0.2% monthly.
The forecast for the USD/CAD turned cautiously bullish after this currency pair corrected into its horizontal support area. The Kijun-sen and the Tenkan-sen have flatlined, suggesting bearish pressure is fading. Following a bearish crossover between the Senkou Span A and the Senkou Span B, the Ichimoku Kinko Hyo Cloud also entered a sideways drift. Traders should also monitor the CCI following its breakout from extreme oversold territory. This technical indicator has plenty of upside potential. Can bulls regain control over the USD/CAD and push price action into its horizontal resistance 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 breakout above the 1.3310 to 1.3375 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long position
- Entry Level: Long Position @ 1.3355
- Take Profit Zone: 1.3535 – 1.3585
- Stop Loss Level: 1.3290
Alternative scenario:
Should price action for the USD/CAD breakdown below 1.3310, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3290
- Take Profit Zone: 1.3170 – 1.3240
- Stop Loss Level: 1.3310
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