USD/CAD Appears to Continue Bullishness After Bouncing Off Key Support Level

Canada – Manufacturing Sales

Tomorrow, at GMT 12:30 p.m., the Statistics Canada will release the month-over-month manufacturing sales data, which measures the changes in the total value of sales made by Canadian manufacturers over the past month.

Since changes in manufacturing sales affect the manufacturers’ future decisions regarding hiring, corporate spending, and overall investment climate in the country, binary options traders consider the manufacturing sales data to be a leading indicator of the Canadian economy.

Last month, the Canadian manufacturing sales figure decreased by 3.3% and the forecast for this month is currently set at -0.7% decrease.

United States – Building Permits

At the same time tomorrow, at GMT 12:30 p.m., the US Census Bureau will release the Building Permits figure, which is an annualized number of new building permits for the residential housing sector issued during the last month.

Since getting a building permit usually indicate future construction work, and construction work usually increases the demand for products and services in the local area, binary options investors consider this data to be a leading indicator of the overall economic activity in the country.

Last month, 1.09 million building permits were issued and this month, analysts are expecting the figure to come out around 1.13 million.

Trade Recommendation for the USD/CAD

USDCADDaily

Since forming a bearish pin bar on January 20, the USD/CAD has remained in a strong downtrend and formed a well-respected downtrend line in the process.  However, after declining around 2,225 pips over the last several months, on May 3, the USD/CAD formed a bullish outside bar (BUOB), and finally broke above the downtrend line.

Last week, the USD/CAD had a retracement and after finding support around the 61.8% Fibonacci retracement level, it seems to have resumed the uptrend.

As the US building permits figure is expected to go up this month, we believe the fundamental outlook for the USD/CAD would support a bullish move.

Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the USD/CAD with their binary options brokers once the price closes above the 1.3015, which is last week’s high.

Recommended Broker for US traders: Finpari

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