USDCAD – Binary Options Technical Analysis.
United States – ISM Non-Manufacturing PMI
Tomorrow, at GMT 3:00 p.m., the US based Institute for Supply Management (ISM) will release its monthly Non-Manufacturing PMI figure, which measures the level of a diffusion index created by surveying purchasing managers. However, the ISM’s PMI figure excludes the non-manufacturing sector.
Binary options investors consider the ISM Non-Manufacturing PMI figure to be a leading economic indicator because purchasing managers have the most updated view of the economy.
Last month, the ISM’s PMI figure came out at 55.5 and the forecast for this month is currently set at a slightly improved figure, at 53.5.
Canada – Building Permits
On Thursday, at GMT 1:30 p.m., Statistics Canada will publish the monthly Building Permits figure that measures the changes in the total number of new permits issued for constructing new premises in the country.
Since permits are mandatory to start building construction, the number of new permits acts as a leading indicator of the future construction activity in the country. Also, binary options traders consider that new constructions help energize the economy, as a new buildings require materials from many other industries.
Last month, the amount of new Building Permits declined by as much as 5.5% and this month the forecast is set on growth of 2.1%.
Trade Recommendation for the USDCAD
After breaking below the uptrend line on August 11, the USDCAD fell towards the psychological support level around 1.2800, where it formed a candlestick reversal pattern, which pushed the price back towards the uptrend line. Last week, the USDCAD price found resistance after touching the uptrend line and resumed the retracement move that has pushed by price towards 38.2% retracement level of the current range.
As the Canadian building permits figure is expected to rebound this week, it would likely set a bearish the fundamental outlook for USD/CAD for the next few days. Furthermore, from a technical point of view, earlier today, the USDCAD price crossed below the 32.8% retracement level, which is at the 1.2950 area, indicating a strong bearish momentum in the market.
Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the USD/CAD with their binary options brokers as soon as the price and closes below the 1.2950 level on the daily chart.
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