Source: PaxForex Premium Analytics Portal, Fundamental Insight
US Initial Jobless Claims for the week of February 24th are predicted at 209K, and US Continuing Claims for the week of February 17th at 1,874K. Forex traders can compare this to US Initial Jobless Claims for the week of February 17th, reported at 201K, and US Continuing Claims for the week of February 10th, reported at 1,862K.
US Personal Income for January is predicted to increase by 0.4% monthly and Personal Spending by 0.2% monthly. Forex traders can compare this to Personal Income for December, which rose by 0.3% monthly, and Personal Spending by 0.7% monthly. The PCE Deflator for January is predicted to increase by 0.3% monthly and 2.4% annualized. Forex traders can compare this to the PCE Deflator for December, which rose by 0.2% monthly and 2.6% annualized. The PCE Core Deflator for January is predicted to accelerate by 0.4% monthly and 2.8% annualized. Forex traders can compare this to the PCE Core Deflator for December, which increased by 0.2% monthly and 2.9% annualized.
The US Chicago PMI for February is predicted at 48.1. Forex traders can compare this to the US Chicago PMI for January, reported at 46.0.
US Pending Home Sales for January are predicted to increase 1.4% monthly. Forex traders can compare this to US Pending Home Sales for December, which surged 8.3% monthly.
US Natural Gas Inventories for the week ending February 23rd are predicted at -86B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending February 16th, reported at -60B cubic feet.
The Canadian GDP for December is predicted to increase 0.2% monthly. Forex traders can compare this to the Canadian GDP for November, which rose 0.2% monthly. The Canadian GDP for the fourth quarter is predicted to expand by 0.8% annualized. Forex traders can compare this to the Canadian GDP for the third quarter, which contracted 1.1% annualized.
The forecast for the USD/CAD turned bearish after this currency pair failed to break out above its horizontal resistance area. The Tenkan-sen and Kijun-sen have flatlined, confirming the lack of short-term bullishness. Volatility could rise with the Senkou Span A of the Ichimoku Kinko Hyo Cloud moving higher with the Senkou Span B flat. Traders should also monitor the CCI in extreme overbought territory. A breakdown below 100 could trigger a sell-off. Can bears overpower bulls to regain control over the USD/CAD and force price action 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 1.3540 to 1.3605 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.3570
- Take Profit Zone: 1.3365 – 1.3405
- Stop Loss Level: 1.3640
Alternative scenario:
Should price action for the USD/CAD breakout above 1.3605, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3640
- Take Profit Zone: 1.3690 – 1.3745
- Stop Loss Level: 1.3605
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