Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for March is predicted to show 212K job additions and an unemployment rate of 3.9%. Forex traders can compare this to the US NFP Report for February, which showed 275K job additions and an unemployment rate of 3.9%. Private Payrolls for March are predicted to show 160K job additions and Manufacturing Payrolls 5K job gains. Forex traders can compare this to Private Payrolls for February, which showed 223K job additions, and Manufacturing Payrolls, which showed 4K job losses. The Average Work Week for March is predicted at 34.3 hours. Forex traders can compare this to the Average Work Week for February, reported at 34.3 hours. Average Hourly Earnings for March are predicted to increase 0.3% monthly and 4.1% annualized. Forex traders can compare this to Average Hourly Earnings for February, which rose 0.1% monthly and 4.3% annualized.
US Consumer Credit for February is predicted at $16.20B. Forex traders can compare this to US Consumer Credit for January, reported at $19.49B.
The Canadian Employment Report for March is predicted to show the addition of 25.9K jobs and an Unemployment Rate of 5.9%. Forex traders can compare this to the Canadian Employment Report for February, which showed the addition of 40.7K jobs and an Unemployment Rate of 5.8%.
The Canadian Ivey PMI for March is predicted at 54.2. Forex traders can compare this to the Canadian Ivey PMI for February, reported at 53.9.
Traders should prepare for lackluster trading until the release of the NFP report, which could spike volatility and add to another day of losses for financial markets.
The forecast for the USD/CAD is cautiously bullish, with this currency pair trading at its horizontal resistance area. Following a bullish crossover, the Kijun-sen and the Tenkan-sen have flatlined as short-term upside momentum has faded. The Senkou Span A of the Ichimoku Kinko Hyo Cloud also flatlined, but the Senkou Span B is moving higher, which could increase short-term volatility as bulls and bears will fight for control of the next move. Traders should also monitor the CCI, which moved back above zero after recording a higher low, but the loss of short-term bullishness could reverse this technical indicator. It could lead to the next leg lower. Can bears overpower bulls and regain control over the USD/CAD to force price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the USD/CAD remain inside the or breakdown below the 1.3535 to 1.3590 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.3565
- Take Profit Zone: 1.3365 – 1.3405
- Stop Loss Level: 1.3615
Alternative scenario:
Should price action for the USD/CAD remain inside the or breakdown below the 1.3535 to 1.3590 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3615
- Take Profit Zone: 1.3690 – 1.3745
- Stop Loss Level: 1.3590
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