USDCAD Confirms Above Ichimoku – Forex Economic Overview
USDCAD Confirms Above Ichimoku
Once again USDCAD confirms above Ichimoku and we have a ton of market moving data from both US and Canada on the first trading days of September. Welcome to Autumn trading guys! And let's see how you can take advantage of the markets today.
USDCAD Confirms Above Ichimoku - Kiana Danial Economic Overview
USDCAD Confirms Above Ichimoku | Technical Analysis
The USD/CAD pair confirmed above the Ichimoku cloud once again but with better than expected economic data from both Canada and the US on Wednesday, the bullish sentiment slowed a little bit. After the massive USD/CAD crash beginning of 2016, the pair started a sideways forex dance pattern since April which continues to this day.
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The next important barrier the pair needs to break is the 1.3150 level which could open doors for the long-awaited correction towards 38% Fibonacci retracement level at 1.33 and 50% Fibo at 1.3545 in extension. The supports remain at 1.2750 and 1.2535.
USDCAD Confirms Above Ichimoku - Forex Technical Analysis
Fundamentals: USDCAD Confirms Above Ichimoku
US Dollar Ended August in Style
Ms. USA seems to be shaping up for a strong start in September as volatility is starting to pick up in the forex market again.
On Wednesday U.S. CB consumer confidence up from 96.7 to 101.1 in August vs. 97.2 forecast. This helped the USD bulls on the forex dance floor.
Canada is Confused, eh?
Canada’s industrial product price index was up 0.2% on Wednesday vs. estimated 0.1% dip.
However their current account deficit widened to 19.9 million CAD from the previous 16.6 billion CAD shortfall. This was already upgraded from the initially reported 16.8 billion CAD deficit. Components of the report revealed that this was as a result of weaker export activity but that foreign investment in the country remained cool.
Underlying inflation readings were als a mixed bag. The raw materials price index posted a sharp 2.7% decline, more than double the estimated 1.3% slump, while the industrial product price index rose by 0.2% instead of showing the projected 0.1% dip. On a less downbeat note, the previous period’s readings enjoyed small upgrades.
Oil is Down... Again.
Not as down as it once was beginning of this year, but with the OPEC September meeting coming up, investors are paying closer attention to crude oil price action. WTI crude oil was down to $46.26 per barrel on Wednesday, even as Iraq’s Prime Minister Haider Al-Abadi noted that they would support an oil output freeze if the OPEC agrees on it. As my Invest Divas know... Lower oil prices weigh on Canadian dollar. So another bullish sign for USD/CAD
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Coming up for CAD and USD
Thursday: On the economic calendar today the US is set to create more volatility during the New York session with their 2nd Quarter Non-Farm Productivity and this week’s Initial Jobless Claims at 12:30 PM GMT, their Markit US Manufacturing PMI at 1:45 PM, and their August ISM Manufacturing at 2 PM. RBC Canadian Manufacturing PMI is set to be out at 1:30 PM so we could expect more volatility in the USD/CAD pair which could make or break the bullish sentiment.
Friday: On Friday we have a ton of market moving events during the New York session right at 12:30 PM GMT, including US Non-farm Payrolls and Unemployment Rate as well as Canada’s Labor Productivity. Also from the US we have their Factory Orders released at 2 PM and the Baker Hughes Rig Counts at 5 PM to end the trading day, and the end of summer trading.
It will be a three day weekend in the US with the Labor Day holiday coming up so keep in mind that market volume could still be low as many investors from there are already on vacation.
Trading Strategy: USDCAD Confirms Above Ichimoku
So how to make pips when USDCAD confirms above Ichimoku?
Bullish Scenario: For a bullish scenario, you might as well already be in a trade, targeting 1.3150 and 1.33 in extension.
Don't forget that your target depends on your RISK TOLERANCE. Something I talk a lot about in my Wealth Management Classes and EVERY trader should know.
Bearish Scenario: Our outlook will only change back to bearish if the pair break below the Ichimoku cloud. So stay tuned maybe?
Here are Invest Diva's calculations for important EURUSD/ approximate levels to keep an eye on:
|Support Levels||Turning Point||Resistance Levels|
More on Economic Calendar
London Session: During the London session the UK will release their Markit PMI Manufacturing data at 8:30 AM
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Asian session: Japan releases their Consumer Confidence Index
London Session: Italy’s GDP at 8 AM GMT followed by UK Construction PMI at 8: 30
New York Session: US Non-farm Payrolls and Unemployment Rate as well as Canada’s Labor Productivity at 12:30 PM.