Source: PaxForex Premium Analytics Portal, Fundamental Insight
US Personal Income for August is predicted to increase by 0.4% monthly, and Personal Spending by 0.3% monthly. Forex traders can compare this to Personal Income for July, which rose by 0.3% monthly, and Personal Spending by 0.5% monthly. The PCE Deflator for August is predicted to expand by 0.2% monthly and 2.3% annualized. Forex traders can compare this to the PCE Deflator for July, which rose 0.2% monthly and 2.5% annualized. The PCE Core Deflator for August is predicted to expand by 0.2% monthly and 2.7% annualized. Forex traders can compare this to the PCE Core Deflator for July, which increased by 0.2% monthly and 2.6% annualized.
The US Trade Balance for August is predicted at -$100.60B. Forex traders can compare this to the US Trade Balance for July, reported at -$102.84B.
US Preliminary Wholesale Inventories for August are predicted to increase 0.2% monthly. Forex traders can compare this to US Wholesale Inventories for July, which rose 0.2% monthly.
The final US Michigan Consumer Sentiment for September is predicted at 69.0. Forex traders can compare this to US Michigan Consumer Confidence for August, reported at 67.9. Final Current Conditions for September are predicted at 62.9, and Final Expectations are predicted at 73.0. Forex traders can compare this to Current Conditions for August, reported at 61.3, and Expectations, reported at 72.1. Final US Michigan Inflation Expectations for September are predicted at 2.7%, and Final US Michigan 5-year Inflation Expectations at 3.1%. Forex traders can compare this to Final US Michigan Inflation Expectations for August, reported at 2.8%, and Final US Michigan 5-year Inflation Expectations at 3.0%.
The Canadian GDP for July is predicted to increase by 0.1% monthly. Forex traders can compare this to the Canadian GDP for June, which was flat at 0.0% monthly.
The forecast for the USD/CAD is cautiously bullish with this currency pair trading at its horizontal support area. The Tenkan-sen and the Kijun-sen have merged and flatlined, suggesting more short-term volatility ahead. The Senkou Span A of the Ichimoku Kinko Hyo Cloud continues to move lower with the Senkou Span B flat, limiting the upside potential. Traders should also monitor the CCI after recording a lower low in extreme oversold territory followed by a breakout. This technical indicator has plenty of upside potential to lead price action higher. Can bears regain control over the USD/CAD and push this currency pair 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 1.3460 to 1.3525 zone, PaxForex recommends the following trade setup:
- Time frame: D1
- Recommendation: Long position
- Entry Level: Long Position @ 1.3490
- Take Profit Zone: 1.3645 – 1.3690
- Stop Loss Level: 1.3415
Alternative scenario:
Should price action for the USD/CAD break down below 1.3460, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3415
- Take Profit Zone: 1.3285 – 1.3335
- Stop Loss Level: 1.3460
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