Our free forex signals service trade today is a buy order on the USDCAD.
The USD/CAD pair drops at the time of writing as the Dollar Index has slipped lower after reaching a new high of 94.30. The DXY was expected to decline after registering an amazing rally on Friday. The currency pair moves sideways, that’s why we need a strong bullish confirmation before considering going long.
In the short term, the USD/CAD pair seems undecided after the United States Advance GDP registered a 2.0% growth versus 2.6% expected, while the Canadian GDP reported only a 0.4% growth compared to 0.7% estimates.
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US ISM Manufacturing PMI Decisive
Today, the United States is to release its ISM Manufacturing PMI which is seen as a high-impact event. The economic indicator is expected to drop from 61.1 to 60.4 points. Furthermore, the Final Manufacturing PMI could remain steady at 59.2 points, the ISM Manufacturing Prices is expected to grow from 81.2 to 82.5 points, while the Construction Spending may register a 0.6% growth.
On the other hand, the Canadian Manufacturing PMI will be released as well later. The fundamentals could drive the rate, so you should keep an eye on these figures.
Technically, the USD/CAD pair moves sideways in the short term and it continues to stay near the descending pitchfork’s upper median line (UML). It has failed to reach this line in its previous attempts, so personally, I still believe that the rate could reach it soon. A valid breakout above it could announce potential growth.
Free forex signals – BUY USD/CAD at 1.2416
Free forex signals entry price and take profit
Instrument: USD/CAD
Order Type: BUY STOP
Entry price: 1.2416
Stop Loss: 1.2325
TP1: 1.2598
My Risk: 1%
Risk / Reward Ratio: 1:2
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