AUD/CAD Broke Downtrend Line and Tests Key Resistance Near 0.9475

AUDCAD – Technical Analysis for Binary Options

Australia – Home Loans

On Tuesday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the month-over-month home loans figure. It measures the changes in the number of new loans approved for owner-occupied homes.

Most home purchases are financed by banks and the new home loan figure acts as an excellent gauge of how many qualified buyers are ready to take out home loans. Therefore, economists and High Low Australia traders consider the changes in the new home loan figure to be a leading indicator of the overall economic situation in the country.

Last month, the Australian new home loans decreased by -6.1%. Analysts are expecting it to decrease by an additional -2.0% this month.

Canada – Manufacturing Sales

On Friday, at GMT 12:30 p.m., the Statistics Canada will release the month-over-month manufacturing sales data. It measures the changes in the total value of sales made by Canadian manufacturers over the past month.

Changes in manufacturing sales affect the manufacturers’ future decisions regarding hiring, corporate spending, and overall investment climate in the country. Therefore, binary options investors consider the manufacturing sales data as a leading indicator of the Canadian economy.

Last month, the Canadian manufacturing sales figure decreased by -1.3%. If the trend continues, it will decrease further and have a bullish effect on the AUD/CAD.

AUD/CAD Forecast

AUD/CAD Analysis - March 11 2019

Since the 300 pips drop on January 2, 2019, the AUD/CAD remained mostly range bound. Over the last three months, it mostly traded within the narrow range between 0.9300 and 0.9575. Over the last week, the AUD/CAD tested the minor resistance near the 0.9475 several times. However, so far, it has failed to break above this resistance.

The Australian home loans figure will likely once again decline by -0.2%. Similarly, analysts are expecting the Canadian manufacturing sales to decline once again. Hence, the directional movement of the AUD/CAD will mostly be dictated by technical factors this week. Given the AUD/CAD broke above the downtrend line last week, there is good possibility that we will soon see a bullish move. Therefore, if the AUD/CAD closes above the resistance near 0.9475, it would likely attract additional bullish momentum in the market.

Hence, HighLow Australia traders should look out for trading opportunities above this major resistance level around 0.9475.

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