AUD/CAD Likely to Test Resistance Near 0.9200 Prior to Turning Bearish Again

AUD/CAD  Forecast & Technical Analysis

Canada – Manufacturing Sales

On Wednesday, 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 and corporate spending. It also affects the overall investment climate in the country. Therefore, HighLow 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 -0.6%. Analysts are expecting it to increase by 1.6% over the last month.

Australia – Unemployment Rate

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

High low traders consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy. It is because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. This is a lagging indicator. But, analyzing this data can help Forex traders predict future interest rates. Also, it can help forecast inflation situation in the country.

Last month, the unemployment rate in Australia came out at 5.2%. This month, analysts are expecting it to remain unchanged at 5.2%.

AUD/CAD Forecast

AUD/CAD Forecast

The AUD/CAD formed a Doji bar on April 17, 2019. Since then, it remained in a strong downtrend. Over the past three months, the AUD/CAD fell by around 530 pips and formed a well-respected downtrend line in the process. Over the last few weeks, the pair remained range bound, but found resistance around the 0.9200 level. Last week, the AUD/CAD fell to 0.9071, but found support near the 0.9085 level. Currently, it is approaching the resistance near 0.9200 once again.

The Australian unemployment rate will likely remain stable at 5.2% over the past month. On the other hand, analysts are expecting the Canadian Manufacturing Sales to increase by 1.6% during the last month. We believe it would set a bullish fundamental outlook for the AUD/CAD this week. Therefore, if the AUD/CAD remain below the support near 0.9200, it would likely attract additional bearish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities below this major support level around 0.9200.

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John Walker

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