USD/CAD Turns Bearish As Forecast for US Housing Market Cools Down

United States – Building Permits

On Thursday, at GMT 1:30 p.m., the US Census Bureau will release the Building Permits figure. It is an annualized number of new building permits for the residential housing sector issued during the last month.

Getting a building permit usually indicate future construction work. So, binary options traders consider this data as a leading indicator of the overall economic activity in the country.

Last month, 1.30 million building permits were issued. However, analysts are expecting the figure to come out around 1.29 million this month.

Canada – Manufacturing Sales

On Friday, at GMT 1:30 p.m., the Statistics Canada will release the month-over-month manufacturing sales data. It measures the changes in the total value of sales made by Canadian manufacturers over the past month.

Changes in manufacturing sales affect the manufacturers’ future decisions regarding hiring, corporate spending, and overall investment climate in the country. Therefore, binary options investors consider the manufacturing sales data as a leading indicator of the Canadian economy.

Last month, the Canadian manufacturing sales figure decrease by -0.4%. If the trend continues, it will decline further and have a bearish effect on the Canadian dollar.

USD/CAD Forecast

The USD/CAD remained bearish after breaking below the uptrend line on November 22, 2017. Over the last two months, it fell by 380 pips. However, after reaching near the 1.2375 level, it found a strong support. Last week, the USD/CAD once again tested the support near 1.2375, but failed to break below it.

The US building permits figure might go down from 1.30 million last month to 1.29 million. On the other hand, analysts are expecting the Canadian manufacturing sales figure to come positive this month after it decreased by -0.4% last month. 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 1.2375, 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 1.2375.

BTC/USD Forecast

After reaching near the 20,000 level, the BTC/USD turned bearish. Over the last few weeks, the BTC/USD formed a well-respected downtrend line. Meanwhile, the 12,830 level acted as a major support level since the start of 2018.

One of the largest cryptocurrency exchanges Kraken finally completed their scheduled maintenance service. Initially, they thought it will only take 2 hours. However, it ended up taking around 2 days to fix their platform. As a result, bitcoin trading volumes remained low.

As Kraken has resumed service, trading volume should go up this week. It means that if the BTC/USD bearishness continues, the momentum will only become stronger. So, if the BTC/USD breaks below the support near 12,830 level, it may attract additional bearish momentum in the market.

Hence, US bitcoin traders should look out for trading opportunities below this major support level around 12,830.

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