June 7, 2012

The Canada IVEY PMI will be released today. This release is considered a leading indicator that receives much attention from traders; especially when its released early in the week before the Employment report. Here’s the forecast:
10:00am (NY Time) CA IVEY PMI Forecast 51.8 Previous 52.7
DEVIATION: 3.0 (BUY CAD 54.5 / SELL CAD 49.0)

DEFINITION
The Ivey Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers from all sectors of the economy, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation’s currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

The Trade PlanOur tradable deviation factor is around 3.0. IVEY PMI is usually tradable when its released before the Canadian Employment Change report. The IVEY PMI is a leading indicator used to predict future trends. The Employment Change is a lagging indicator that is usually two months behind. Therefore, the IVEY PMI report should indicate which direction the employment report will go in the future…
We’ll look to BUY CAD if we get 54.5 or more. We’ll look to SELL CAD if we get 49.0 or less.

Recommended Pairs : USDCAD, CADJPY

USDCAD.
Resistances : Weekly 1.035 , Daily 1.031 , Hourly 1.0295
Supports : Weekly 1.021 , Daily 1.0235 , Hourly 1.0265

BOOKS

Expert Advisor Programming: Creating Automated Trading Systems in MQL for MetaTrader 4 - Andrew R. Young- EUR 24,55
0982645902