Building Permits
Today at 14:30 (CET) we expect the release of Building Permits in Canada. The indicator is released monthly and shows the number of permits for new construction, issued by the government. Building Permits data permits estimating the growth potential of the real estate sector and, as a result, goods of secondary demand and technology sector. The reduced index values are perceived by investors as a negative signal for domestic consumption and production. If the value is worse than expected, we can count on further growth of USDCAD currency pair.
Here we consider this instrument on the H4 chart. The price is moving upwards within the W1, D1 and H4 price channel: bullish trend is observed for all the timeframe scales. ParabolicSAR historical values confirm the H4 trend line and cross the lower boundary of Donchian Channel. Two graphic bullish signals are received: the breakout of the triangle side on the price chart, and a similar graphic pattern on the RSI-Bars oscillator chart. Note that RSI-Bars oscillator has justified itself as a leading indicator, because its graphic pattern was formed a few hours earlier (!). The volume of futures traded on the Chicago Mercantile Exchange is growing: it confirms the trend on the D1 chart. For monitoring the liquidity evolution click here. A pending buy order may be placed above the resistance at 1.14789. This mark is confirmed by a Bill Williams fractal and the upper boundary of the Donchian Channel. Stop Loss is better to be placed below the support fractal at 1.13805. It is important to note that this level crosses the upper triangle side and it reinforces its significance.After position opening, Stop Loss is to be moved after the Parabolic values, near the next fractal low. Updating is enough to be done every day after a new Bill Williams fractal formation (5 candlesticks). Thus, we are changing the probable profit/loss ratio to the breakeven point.
| Position | Buy |
| Buy stop | above 1.14789 |
| Stop loss | below 1.13805 |
Dear traders. For the detailed report of the strategy based on analytical issues of technical analysis click here.