Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Canadian CPI for May is predicted to increase by 0.5% monthly and 3.4% annualized. Forex traders can compare this to the Canadian CPI for April, which rose by 0.7% monthly and 4.4% annualized. The Canadian Core CPI for May is predicted to expand by 0.5% monthly and 3.9% annualized. Forex traders can compare this to the Canadian Core CPI for April, which increased by 0.5% monthly and 5.7% annualized. The Core CPI-Median for May is predicted to expand by 3.8% annualized, and the Core CPI-Trimmed by 3.9%. Forex traders can compare this to the Core CPI-Median for April, which rose by 4.2% annualized, and the Core CPI-Trimmed by 4.2% annualized.
US Preliminary Durable Goods Orders for May are predicted to drop by 1.0% monthly, and Durables Excluding Transportation by 0.1% monthly. Forex traders can compare this to US Durable Goods Orders for April, which rose by 1.1% monthly, and Durables Excluding Transportation, which decreased by 0.2% monthly. Capital Goods Orders Non-Defense Excluding Aircraft for May are predicted flat at 0.0% monthly. Forex traders can compare this to Capital Goods Orders Non-Defense Excluding Aircraft for April, which rose by 1.4% monthly.
The US House Price Index for April is predicted to increase by 0.3% monthly and 3.1% annualized. Forex traders can compare this to US House Price Index for March, which rose by 0.6% monthly and 3.6% annualized.
The US S&P/Case-Shiller Composite 20 for April is predicted to rise by 0.50% monthly and contract by 2.60% annualized. Forex traders can compare this to the US S&P/Case-Shiller Composite 20 for March, which rose 0.50% monthly and decreased by 1.10% annualized.
US Consumer Confidence for June is predicted at 104.0. Forex traders can compare this to US Consumer Confidence for May, reported at 102.3.
US New Home Sales for May are predicted at 675K new homes. Forex traders can compare this to US New Home Sales for April, reported at 683K new homes.
The US Richmond Fed Manufacturing Index for June is predicted at -10. Forex traders can compare this to the US Richmond Fed Manufacturing Index for May, reported at -15. The US Richmond Fed Services Index for June is predicted at 7. Forex traders can compare this to the US Richmond Fed Services Index for May, reported at -10.
The US Dallas Fed Services Revenues Index for June is predicted at 6.0. Forex traders can compare this to the US Dallas Fed Services Revenues Index for May, reported at 6.9.
The forecast for the USD/CAD turned cautiously in the short term after this currency pair stabilized at its horizontal support area. Volatility could rise as the Tenkan-sen and the Kijun-sen descend, while the Ichimoku Kinko Hyo moves lower. Traders should also monitor the CCI in extreme oversold territory after it has formed a positive divergence. A breakout above -100 could trigger a reversal rally. Can bulls take control of price action and push the USD/CAD into its horizontal resistance 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 breakout above the 1.3080 to 1.3150 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long position
- Entry Level: Long Position @ 1.3120
- Take Profit Zone: 1.3335 – 1.3400
- Stop Loss Level: 1.3050
Alternative scenario:
Should price action for the USD/CAD breakdown below 1.3080, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3050
- Take Profit Zone: 1.2950 – 1.2980
- Stop Loss Level: 1.3080
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