USDCAD Up Ahead of Canada’s Manufacturing Sales

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USDCAD Up Ahead of Canada’s Manufacturing Sales

8:00 AM EST: USDCAD Up Ahead of Canada’s Manufacturing Sales

USD/CAD Daily: Heading up inside Ichimoku Cloud above 23% Fibonacci

Technical Analysis

After failing to break below the 38% Fibonacci  level at 1.1990 back in May, the pair rallied back up reaching our key resistance level of 1.25. Currently failing to break below the  Ichimoku cloud with a bullish sentiment, we could see more up moves back to 1.25 and 1.27 in extension.

Economic Points

US Fed Rate Decision

Focus in the US this week is going to be squarely on the Federal Reserve rate decision on Wednesday. There almost certainly won’t be a rate hike, but the market thinks that there will be strong signals that a rate hike is on the cards this year – something that the IMF and World Bank have both urged against. The Economist’s cover story this weekend was on the risks of a global recession and the US raising rates is one area that could make that a reality, if it’s not managed properly.

Canada’s Factory Sales

Expected to fall to -1.3% comparing to last month’s 2.9%. A worse than expected release could weaken Mr. Canadian Dollar which in return would push the Ms. USA up against him.

The manufacturing (factory) sales index a leading indicator of economic health – manufacturers are quickly affected by market conditions, and changes in their sales can be an early signal of future activity such as spending, hiring, and investment.

Trading idea

Bullish above 23% Fibonacci targeting 1.25

Suggested stops and limits:

Support Levels Turning Point Resistance Levels
1.1990 1.23 1.25
1.1730 1.2180 1.27

*Important Note: The support and resistance levels are not suitable for all traders and largely depend on your account size, margin and leverage. Book a private lesson to learn how to personalize your account based on our trading guide.