AUDCAD May Test Key Support Amid Forecast of Improving Canadian Manufacturing Sales

AUDCAD – Binary Options Technical Analysis

Canada – Manufacturing Sales

Tomorrow, at GMT 1:30 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 investors consider the manufacturing sales data to be a leading indicator of the Canadian economy.

In September, the Canadian manufacturing sales figure increased by 0.1% and the forecast for this month is currently set an increase of 0.3%.

Australia – Unemployment Rate

On Thursday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate, which measures the percentage of total work force which remained unemployed over the past month.

Binary options investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help binary options traders predict future interest rates and inflation situation in the country.

Last month, the unemployment rate in Australia came out at 5.6% and the forecast for this month is that the unemployment will slightly increase to 5.7%.

Trade Recommendation for the AUDCAD

AUDCAD - Technical Analysis for Binary Options and Forex

Since forming a bullish pin bar on May 26, 2016, the AUD/CAD has been trending upwards and so far, the price has climbed around 775 pips. However, over the last two weeks, the AUDCAD has been on a minor retracement that pushed the price towards the important support around the 0.9950 level.

Last week, as soon as AUD/CAD price reached near the 0.9950 level, it found a strong support, which pushed the price upwards and the pair formed another bullish pin bar. But, the AUD/CAD seems to have lost the bullish momentum as the price remained range bound for the last few days.

As the Canadian manufacturing sales figure is expected to improve by 0.2% over the last month, we believe the fundamental outlook for the AUDCAD would likely to remain bearish this week and the price will retest the 0.9950 level once again.

Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the AUDCAD with their binary options brokers as soon as the price penetrates and closes below the 0.9950 level on the daily time frame.

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