Source: PaxForex Premium Analytics Portal, Fundamental Insight
Canadian retail sales for September are predicted to increase by 0.3% monthly, and Canadian core retail sales to decrease by 0.5% monthly. Forex traders can compare this to Canadian retail sales for August, which expanded by 0.4% monthly, and Canadian core retail sales, which dropped by 0.7% monthly.
Canadian Manufacturing Sales for October are predicted to decrease by 0.8% monthly. Forex traders can compare this to Canadian Manufacturing Sales for September, which dropped 1.3% monthly.
The Canadian New Housing Price Index for October is predicted to increase by 0.1% monthly. Forex traders can compare this to the Canadian New Housing Price Index for September, which came in flat at 0.0% monthly.
Canadian Wholesale Trade Sales for October are predicted to increase by 0.9% monthly. Forex traders can compare this to Canadian Wholesale Trade Sales for September, which dropped by 0.6% monthly.
The Final US Michigan Consumer Sentiment for November is predicted at 73.0. Forex traders can compare this to US Michigan Consumer Confidence for October, reported at 70.5. Final Current Conditions for November are predicted at 64.4, and Final Expectations at 78.5. Forex traders can compare this to Current Conditions for October, reported at 64.9, and Expectations at 74.1. Final US Michigan Inflation Expectations for November are predicted at 2.6%, and Final US Michigan 5-year Inflation Expectations at 3.1%. Forex traders can compare this to Final US Michigan Inflation Expectations for October, reported at 2.7%, and Final US Michigan 5-Year Inflation Expectations at 3.0%.
The forecast for the USD/CAD is cautiously bearish, with this currency pair trading at its horizontal resistance area. Price action trades above its ascending Kijun-sen and below its ascending Tenkan-sen, with more short-term volatility ahead. The Senkou Span A of the Ichimoku Kinko Hyo Cloud is moving higher, with the Senkou Span B trending sideways, suggesting more medium-term volatility. Traders should also monitor the CCI following its breakdown from extreme overbought territory. This technical indicator has more downside potential, and a move below zero could trigger the next wave of sell orders. Can bears regain 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 1.3950 to 1.4000 zone, PaxForex recommends the following trade setup:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.3975
- Take Profit Zone: 1.3745 – 1.3815
- Stop Loss Level: 1.4035
Alternative scenario:
Should price action for the USD/CAD break out above 1.4000, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4035
- Take Profit Zone: 1.4085 – 1.4105
- Stop Loss Level: 1.4000
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