Source: PaxForex Premium Analytics Portal, Fundamental Insight

US Initial Jobless Claims for the week of January 23rd are predicted at 875K, and US Continuing Claims for the week of January 16th are predicted at 5,054K. Forex traders can compare this to US Initial Jobless Claims for the week of January 16th, reported at 900K, and to US Continuing Claims for the week of January 9th, reported at 5,054K.

The Advanced US GDP for the fourth quarter is predicted to increase by 4.0% annualized. Forex traders can compare this to the third-quarter GDP, which increased by 33.4% annualized. The GDP Price Index for the fourth quarter is predicted to increase by 2.4% annualized. Forex traders can compare this to the third-quarter GDP Price Index, which increased by 3.7% annualized. The Core PCE for the fourth quarter is predicted to increase by 1.5% annualized. Forex traders can compare this to the third- quarter Core PCE, which increased by 3.4% annualized.

US New Home Sales for December are predicted to increase by 1.9% monthly to 865K new homes. Forex traders can compare this to US New Home Sales for November, which decreased by 11.0% monthly to 841K new homes. The US Leading Index for December is predicted to increase by 0.3% monthly. Forex traders can compare this to the US Leading Index for November, which increased by 0.6% monthly. Canadian Building Permits for December are predicted to decrease by 5.0% monthly. Forex traders can compare this to Canadian Building Permits for November, which increased by 12.9% monthly.

The forecast for the USD/CAD remains bearish after price action pushed higher and into the Senkou Span A of its Ichimoku Kinko Hyo Cloud. With the Kijun-sen descending, a crossover below its Tenkan-sen can trigger the next round of selling. Fundamental developments out of the US suggest more economic weakness, and the CCI moved into extreme overbought territory. Traders should wait for a move below -100 to place their sell orders. Will bears 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 1.2780 to 1.2865 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.2825
• Take Profit Zone: 1.2460 – 1.2515
• Stop Loss Level: 1.2915

Should price action for the USD/CAD breakout above 1.2865 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.2915
• Take Profit Zone: 1.2955– 1.3000
• Stop Loss Level: 1.2865

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