United States – New Home Sales
On Monday at GMT 3:00 p.m., the United States Census Bureau released the New Home Sales figure. It measures the annualized number of new family homes sold during the last month.
The sale of a new home usually causes an increase in a wide ranging economic activity, such as sales of new furniture, new mortgage for the home, etc. Binary options traders considered the New Home Sales figure to be a leading fundamental indicator of the US economy.
Last month, on a year-over-year basis, total 654,000 new homes were sold in the United States. This month, the it came out at 593,000 against a consensus forecast of 655,000.
Canada – Raw Materials Price Index
On Wednesday, at GMT 1:30 p.m., the Statistics Canada will release the month-over-month Raw Materials Price Index (RMPI). It measures the changes in the price of raw materials bought by manufacturers in the country over the past month.
Binary options investors consider the RMPI to be an important leading indicator of consumer inflation in Canada. It is because if manufacturers pay more to buy raw materials, then ultimately the retail customers end up paying for the higher cost of production.
Last month, the Canadian RMPI decreased by -0.9%. Analysts are expecting it to increase by 0.9% this month.
The USD/CAD broke above the downtrend line on February 2. Since then, it has climbed up by over 370 pips over the last few weeks. However, last week, the USD/CAD formed a pin bar and turned bearish and found support around the 1.2615 level.
The new home sales figure in the US for last month came out much lower than what the analysts were expecting. On the other hand, the forecast for the Canadian Raw Materials Price Index is set to grow by 0.9%. We believe it would set a bearish fundamental outlook for the USD/CAD this week. Therefore, if the USD/CAD closes below the support near 1.2615, it would likely attract additional bearish momentum in the market.
Hence, US binary options traders should look out for trading opportunities below this major support level around 1.2615.
After falling towards the 6,000 level, the BTC/USD found strong support. However, in the last few weeks, despite increasing government regulation across the world against bitcoin, the BTC/USD started a bullish retracement. Currently, it is trading just below the downtrend line. This trend line is near the resistance around 11,200.
Earlier this week, news broke that Tokyo-based cryptocurrency exchange Coincheck is thinking about a capital tie-up to strengthen its financial base. Doing so will help them regain trust and it will be a positive development for Cryptocurrency traders. We believe this new development will accelerate the current bullish momentum of BTC/USD.
Hence, US bitcoin traders should look out for trading opportunities above this major resistance level around 11,200.