AUD/CAD – Technical Analysis for Australian Binary Options Brokers
Australia – Building Approvals
On Wednesday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the national month-over-month building approvals figure, which measures the changes in the number of approvals of new buildings.
Since a build permit indicates new construction work, it suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, binary options traders consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.
Last month, the building approvals figure went down by -8.7% and the forecast for this month is currently set at an increase of 2.2%.
Canada – Raw Materials Price Index
Later, at GMT 1:30 p.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 investors 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.
Last month, the Canadian RMPI came decreased by -0.1% and the forecast for this month is currently set at an increase of 3.2%.
Trade Recommendation for the AUD/CAD
Since the second week of July, 2016, the AUD/CAD remained in a strong uptrend and formed a well-respected uptrend line in the process. However, on November 16, the AUD/CAD price penetrated and closed below this uptrend line, effectively ending the trend.
But, on November 21, the AUD/CAD formed a Doji bar on the daily time frame and the pair started a bullish retracement, which pushed the price towards the resistance level near 1.0070. For the last few days, the AUD/CAD price has been trading near the 1.0070 level, but so far, it has failed to close above this important resistance zone.
As the Australian building approvals figure is expected to improve by 2.2% this month, we believe the fundamental outlook for the AUD/CAD would remain bullish this week. Hence, if the price closes above the 1.0070 level, it would likely attract additional bullish momentum in the market.
Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the AUD/CAD with their Australian binary options brokers as soon as the price closes above the 1.0070 level on the daily time frame.
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