Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US Empire Manufacturing Index for November is predicted at 21.6. Forex traders can compare this to the US Empire Manufacturing Index for October, reported at 19.8.
Canadian Manufacturing Sales for November are predicted to decrease 3.0% monthly. Forex traders can compare this to Canadian Manufacturing Sales for October, which increased 0.5% monthly. Canadian Wholesale Trade Sales for September are predicted to increase 1.1% monthly. Forex traders can compare this to Canadian Wholesale Trade Sales for August, which increased 0.3% monthly.
The forecast for the USD/CAD remains bearish after price action failed to extend its advance once it approached its descending Ichimoku Kinko Hyo Cloud. While the Tenkan-sen continues to drift higher, the Kijun-sen has flattened out, suggesting the absence of short-term bullish momentum. Adding to downside pressures is the CCI, which started to descend inside extreme overbought territory, forming a negative divergence. Forex traders should wait for a breakdown below 100 before entering their short positions. Can bears wrestle control from bulls and pressure the USD/CAD 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 1.2490 to 1.2555 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2525
- Take Profit Zone: 1.2285 – 1.2335
- Stop Loss Level: 1.2570
Should price action for the USD/CAD breakout above 1.2555, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2570
- Take Profit Zone: 1.2615 – 1.2685
- Stop Loss Level: 1.2555
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