USD/CAD Trading Near Key Resistance after US Empire State Manufacturing Index Declined

Canada – Manufacturing Sales

Today, at GMT 1:30 p.m., the Statistics Canada released the month-over-month manufacturing sales data, which measures the changes in the total value of sales made by Canadian manufacturers over the past month.

Since changes in manufacturing sales affect the manufacturers’ future decisions regarding hiring, corporate spending, and overall investment climate in the country, binary options traders consider the manufacturing sales data to be a leading indicator of the Canadian economy.

In October, the Canadian manufacturing sales figure decreased by 0.6% and the forecast for November was set at an increase of 0.3%. However, the actual figure came out at a negative 1.5%.

United States – Empire State Manufacturing Index

At the same time, at GMT 1:30 p.m., the Federal Reserve Bank of New York released the empire state manufacturing index, which measures the level of a diffusion index by surveying 200 manufacturers in the state of New York.

Since businesses are the first to react to changing market conditions, binary options traders consider this survey to be an important leading indicator of New York’s economic health. As New York makes up a large portion of the US economy, it can signal a larger trend in the overall US economy.

In October, the empire state manufacturing index reading came out at -11.4 and the forecast for November was set at an optimistic reading of -5.3. However, the actual index reading came out much worse than what the market was expecting, at negative -10.7.

Trade Recommendation for the USD/CADUSDCADDaily

After being rejected around the uptrend line in early October, the USD/CAD resumed the uptrend and climbed around 540 pips in the process. Today, the USD/CAD price reached the resistance around 1.3350 and the price got rejected around this level. So far, it has retraced around 30 pips from the daily high.

As the empire state manufacturing index has once again declined more than what the market was expecting, the USD/CAD resistance around the 1.3350 level may hold the current bullish momentum. However, if the price closes above this level, it would indicate additional bullishness.

Under the circumstances, it is recommended that traders consider placing a CALL order for the USD/CAD with their binary options brokers once the price penetrates and closes above the 1.3355 level.

Recommended Broker: GOptions

Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and write on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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