AUDCAD – Technical Analysis for Binary Options
Canada – Building Permits
On Monday, at GMT 1:30 p.m., Statistics Canada will publish the monthly Building Permits figure. It measures the changes in the total number of new permits issued for constructing new premises in the country.
Building permits are mandatory to start building construction. So, the number of new permits acts as a leading indicator of the future construction activity in the country. Also, binary options brokers consider that new constructions help energize the economy, as new buildings require materials from many other industries.
Last month, the amount of new Building Permits grew by as much as 0.4%. The forecast for this month was set at -0.2%. The actual figure came out at -0.2% as well.
Australia – House Price Index
On Tuesday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the House Price Index (HPI). It measures the changes in the selling price of houses in the 8 state capitals in Australia.
Rising house prices indicate that investors are confident about purchasing houses. Hence, HighLow binary options investors consider the HPI to be a leading indicator of investor confidence in the country. The HPI is usually released every three months in a quarter-over-quarter format.
Last month, the Australian HPI suggested that house prices in Australia’s 8 state capitals increased by 0.7%. The forecast for this month is set at a decrease of -1.5%.
AUD/CAD Forecast
Since breaking above the uptrend line on October 31, the AUDCAD has climbed up by around 450 pips. However, over the last week, the started a bearish retracement and found support near the 0.9575 level. Currently, it appears to be bearish and might test the support again.
The Australian House Price Index might drop by another -1.5% this month. On the other hand, the Canadian building permits figure already dropped by -0.2%, same as expected. We believe it would set a bearish fundamental outlook for the AUDCAD this week. Therefore, if the AUD/CAD closes below the support near 0.9575, it would likely attract additional bearish momentum in the market.
Hence, binary options should look out for trading opportunities below this major support level around 0.9575.
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