Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US Import Price Index for May is predicted at 0.0% monthly, and the US Export Price Index at 0.0% monthly. Forex traders can compare this to the US Import Price Index for April, which rose by 0.9% monthly, and to the US Export Price Index, which accelerated by 0.5% monthly.
Preliminary US Michigan Consumer Sentiment for June is predicted at 72.1. Forex traders can compare this to US Michigan Consumer Confidence for May, reported at 69.1. Preliminary Current Conditions for June are expected at 71.0, and Preliminary Expectations are predicted at 70.0. Forex traders can compare this to Current Conditions for May, reported at 69.6, and Expectations at 68.8.
Canadian Manufacturing Sales for April are predicted to rise by 1.3% monthly. Forex traders can compare this to Canadian Manufacturing Sales for March, which decreased 2.1% monthly.
Canadian Wholesale Trade Sales for April are predicted to expand by 2.6% monthly. Forex traders can compare this to Canadian Wholesale Trade Sales for March, which dropped by 1.1% monthly.
The forecast for the USD/CAD remains bearish after this currency pair drifted higher into its horizontal resistance area. The Ichimoku Kinko Hyo Cloud narrowed with the Senkou Span A shifting lower and the Senkou Span B shifting higher, leaving the Ichimoku Kinko Hyo Cloud vulnerable to a bearish crossover. Short-term volatility may increase after a bullish crossover between the Tenkan-sen and the Kijun-sen, but the Kijun-sen flatlined, suggesting an absence of upside momentum. The Tenkan-sen drifts higher with decreasing momentum. Traders should also monitor the CCI after recording a lower high in extreme overbought territory followed by a breakdown below 100. This technical indicator has plenty of downside potential to lead this currency pair into a correction. Can bears maintain 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 1.3715 to 1.3760 zone, PaxForex recommends the following trade setup:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.3735
- Take Profit Zone: 1.3475 – 1.3545
- Stop Loss Level: 1.3790
Alternative scenario:
Should price action for the USD/CAD break out above 1.3760, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3790
- Take Profit Zone: 1.3845 – 1.3900
- Stop Loss Level: 1.3760
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