Source: PaxForex Premium Analytics Portal, Fundamental Insight
US Initial Jobless Claims for the week of January 2nd are predicted at 800K, and US Continuing Claims for the week of December 26th are predicted at 5,200K. Forex traders can compare this to US Initial Jobless Claims for the week of December 26th, which were reported at 787K, and to US Continuing Claims for the week of December 19th, which were reported at 5,219K. The US Trade Balance for November is predicted at -$65.2B. Forex traders can compare this to the US Trade Balance for October, reported at -$63.1B.
The US ISM Non-Manufacturing PMI for December is predicted at 54.6. Forex traders can compare this to the US ISM Non-Manufacturing PMI for November, reported at 55.9. The ISM Non-Manufacturing Business Activity Index for December is predicted at 55.0. Forex traders can compare this to the ISM Non-Manufacturing Business Activity Index for November, reported at 58.0.
The Canadian Trade Balance for November is predicted at -C$3.50B. Forex traders can compare this to the Canadian Trade Balance for October, reported at -C$3.76B. The Canadian Ivey PMI for December is predicted at 54.7. Forex traders can compare this to the Canadian Ivey PMI for November, reported at 52.7.
The forecast for the USD/CAD remains bearish after price action dipped to a fresh 52-week low. The Covid-19 pandemic, political turmoil, and the prospects of more debt and higher taxes pressures the US Dollar to the downside. The descending Tenkan-sen and Kijun-sen suggest bearish momentum has the upper hand. While the Ichimoku Kinko Hyo Cloud is losing some inertia, the outlook is negative. The CCI dipped into extreme oversold territory with more downside potential. Will bears continue to pressure the USD/CAD towards 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 1.2655 to 1.2725 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2680
- Take Profit Zone: 1.2460 – 1.2515
- Stop Loss Level: 1.2755
Should price action for the USD/CAD breakout above 1.2725 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2755
- Take Profit Zone: 1.2820 – 1.2875
- Stop Loss Level: 1.2725
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