Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary US Markit Manufacturing PMI for February is predicted at 58.5, and the US Markit Services PMI is predicted at 57.6. Forex traders can compare this to the US Markit Manufacturing PMI for January, reported at 59.2, and to the US Markit Services PMI, reported at 58.3. US Existing Home Sales for January are predicted to decrease by 1.5% monthly to 6.61M. Forex traders can compare this to US Existing Home Sales for December, which increased by 0.7% monthly to 6.76M.
Canadian Retail Sales for December are predicted to decrease by 2.5% monthly, and Canadian Core Retail Sales are predicted to decrease by 2.0% monthly. Forex traders can compare this to Canadian Retail Sales for November, which increased by 1.3% monthly, and to Canadian Core Retail Sales, which increased by 2.1% monthly.
The forecast for the USD/CAD remains bearish after yesterday’s US initial jobless claims disappointed again, with upward revisions to the previous week. Treasury Secretary Yellen is pushing for more debt, adding downside pressure on the US Dollar. This currency pair remains below its descending Ichimoku Kinko Hyo Cloud. The Kijun-sen entered a sideways trend, but the Tenkan-sen continues to descend. After the CCI moved out of extreme oversold territory, it has more downside potential. Will bears keep the pressure alive and force the USD/CAD into its next 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 1.2665 to 1.2715 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2690
- Take Profit Zone: 1.2460 – 1.2515
- Stop Loss Level: 1.2760
Should price action for the USD/CAD breakout above 1.2715 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2760
- Take Profit Zone: 1.2850 – 1.2880
- Stop Loss Level: 1.2715
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
