US - Institute of Supply Management (ISM) Manufacturing PMI
Today, at the hour 3:00 pm GMT, the Institute for Supply Management will release the Manufacturing PMI for the United States. The US ISM Manufacturing PMI measures the level of the Diffusion Index based on a survey of 400 Purchasing Managers. Purchasing managers in the United States are involved in the supply side of the economy. As most companies are cutting expenses and production based on their sales forecasts, the survey of purchasing managers reveals the overall optimism of various companies in the country. Thus, binary options traders can easily know the speculation about the economic situation in the country through ISM manufacturing PMI readings. Last month, the ISM PMI for the United States came in at 53.2 The forecast for this month is currently set and the reading was slightly lower, at 53,1.
Canada - Trading Balance
On Friday, at 1:30 GMT, Statistics Canada will release its monthly trading balance, which will measure the difference between the value of net imports and exports of goods over the past month. Since the demand for export is directly related to the demand for the Canadian dollar, binary options investors analyze the monthly trading balance to gauge the strength of the Canadian dollar against other major currencies. Last month, the Canadian trading balance came in at -3.3 and the forecast for August is currently set a little better, but still negative, as compared to July, the figure came in at -2.6.
Trading recommendations for the USD/CAD currency pair
Since the beginning in 2016, the USD/CAD currency pair has been in a strong downtrend. However, since May 3, after the USD/CAD currency pair broke above the downtrend line, the price has remained between 1,2460 and 1,3185.
Last week, the currency pair broke through the US dollar The Aussie is above the 1,3185 level, but with no bullish momentum pushing the price down as it is now trading near the 23.6% Fibonacci retracement level of the last bullish wave.
This week, the Canadian trading balance was forecast to improve compared to the previous month, which was likely to determine the fundamental bearish outlook for the USD/CAD. Thus, if the USD/CAD closes below the 1,3016 level, which is the 23.6% Fibonacci retracement, there is a high probability that the price will move towards the intermediate upward trend line that formed over the past two months.
Under these circumstances, it would be advisable for binary options traders to consider setting up a sell order for the USD/CAD currency pair with binary options brokers as soon as the price rose and closed below the 1.3000 level on the daily chart, the lowest level since Last Friday it was a big round number (BRN).
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