United States – Durable Goods Orders
Today, at 12:30 p.m., the US Census Bureau will release the month-over-month Durable Goods Orders, which measures the changes in the net value of new durable goods purchase orders made to US manufacturers over the past month.
As rising orders signals that manufacturers will be increasing their economic activity, binary options investors consider the durable goods order to be a leading indicator of the US economy.
Last month, the US durable goods orders have declined by 2.2%. However, the forecast is that over the past month it has rebounded and possibly the amount of orders increased by 3.2%
Canada – Raw Materials Price Index
Tomorrow, at GMT 12:30 a.m., the Statistics Canada will release the month-over-month Raw Materials Price Index (RMPI), which measures the changes in the price of raw materials bought by manufacturers in the country over the past month.
Binary options traders consider the RMPI to be an important leading indicator of consumer inflation in Canada, because if manufacturers pay more to buy raw materials, then ultimately the retail customers end up paying for the higher cost of production.
Over the past several months, the Canadian RMPI has been gradually increasing. In June, it increased by 4.4% and the current trend continues, it would add additional bullishness to the Canadian Dollar.
Trade Recommendation for the USD/CAD
Since forming a bullish pin bar on June 18, the USD/CAD price has climbed up over 950 pips in the past several weeks. However, on last Friday, it formed a bearish pin bar after the price was rejected around the resistance zone near the 1.3100 level.
Earlier today, the USD/CAD price penetrated below the low of this pin bar, which was at 1.3017, signaling the start of a bearish retracement towards the uptrend line.
Currently, the USD/CAD price is trading above this trend line, after finding ample support near it few hours ago.
Given that the Canadian Raw Material Price Index is set to increase this week, it may trigger a change in trend. However, from a technical perspective, the USD/CAD price first needs to break the trend line and close below it.
Hence, it is recommended that traders consider placing a PUT order for the USD/CAD with their binary options brokers once the price closes below the 1.2950 level, as it would signal further bearishness in the market.[featured feattitle=’Recommended Broker: HighLow.net’ site=’HighLow’ ] HighLow.net is a popular australian binary options broker regulated by ASIC. [/featured]
About our Forex and Binary Options Analyst: Asif Imtiaz
- GBP/AUD Appears Bullish Amid Impressive Growth of Net Lending to Individuals in the UK - January 4, 2022
- AUD/CHF Likely to Break Above Key Resistance if Swiss Trade Balance Declines - December 20, 2021
- AUD/JPY Downtrend Line Likely to Hold the Bulls As Declining Japanese Household Spending Slowed Down - December 7, 2021