Will The PMI Data in Australia and Canada Give Strength to The Major Downtrend

Summary:

The AUD/CAD pair, forecasting a weaker Australian dollar and a stronger Canadian dollar based on upcoming economic data and technical indicators indicating a downtrend formation.

SELL AUDCAD

Close Time

CLOSED

0.88402

Entry Price

0.87586

0.88778

0.99039 -0.00401 -0.40%

37.6

Pips

Loss

0.87586

0.88779

Exit Price

0.88402

Entry Price

0.88778

Let's delve into the dynamics shaping the Australian dollar (AUD) against the Canadian dollar (CAD) pair.

Fundamental Analysis

Tomorrow's release of the manufacturing Purchasing Managers' Index (PMI) in Australia is pivotal. With market expectations anticipating a decline from 47.8 to 46.8, a lower figure could exert downward pressure on the AUD. Conversely, in Canada, the forthcoming services PMI data is anticipated to rise from 46.6 to 47.2. If this prediction materializes, it could bolster the CAD. Hence, a comparative analysis suggests a potential weakening of the AUD against the strengthening CAD. Will The PMI Data in Australia and Canada Give Strength to The Major Downtrend_1

Will The PMI Data in Australia and Canada Give Strength to The Major Downtrend_1

Australia Judo Bank Manufacturing PMI

Canada S&P Global Services PMI

Technical Analysis

Zooming into the 4-hour chart, the current price stands at 0.88037. A retracement towards the previous supply zone at 0.88500 is expected. Subsequently, a downward movement towards the oldest demand zone at 0.87500 may occur, indicative of a downtrend formation characterized by lower highs and lower lows. Additionally, the 20-period moving average is descending, further supporting the bearish sentiment.

Conclusion

Combining fundamental insights with technical indicators, the outlook for the AUD/CAD pair leans towards a bearish trajectory. Anticipated data releases in Australia and Canada are poised to influence market sentiment, potentially leading to a weaker Australian dollar and a stronger Canadian dollar. Technical analysis reinforces this outlook, suggesting a downtrend formation. Traders are advised to closely monitor economic indicators and chart patterns for strategic entry and exit points. Will The PMI Data in Australia and Canada Give Strength to The Major Downtrend_3

Will The PMI Data in Australia and Canada Give Strength to The Major Downtrend_3

AUDCAD Price chart

Trading Recommendation

Trading Direction: Short

Entry Price: 0.88402

Target Price: 0.87586

Stop Loss: 0.88778

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