Source: PaxForex Premium Analytics Portal, Fundamental Insight
US Challenger Job Cuts for March are predicted at 65,000, up 148.0% year-over-year. Forex traders can compare this to US Challenger Job Cuts for February, which came in at 77,770, up 410.1% year-over-year.
US Initial Jobless Claims for the week of April 1st are predicted at 200K, and US Continuing Claims for the week of March 25th at 1,699K. Forex traders can compare this to US Initial Jobless Claims for the week of March 25th, reported at 198K, and US Continuing Claims for the week of March 18th at 1,689K.
The US IBD/TIPP Economic Optimism Index for April is predicted at 47.0. Forex traders can compare this to the US IBD/TIPP Economic Optimism Index for March, reported at 46.9.
US Natural Gas Inventories for the week ending March 31st are predicted at -21B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending March 24th, reported at -47B cubic feet.
The Canadian Employment Report for March is predicted to show the addition of 12.0K jobs and an Unemployment Rate of 5.1%. Forex traders can compare this to the Canadian Employment Report for February, which showed the addition of 21.8K jobs and an Unemployment Rate of 5.0%. 5.0K Full-Time Positions are expected to have been lost, and 15.0K Part-Time Positions were created in March. Forex traders can compare this to the creation of 31.1K Full-Time Positions, and the loss of 9.3K Part-Time Positions reported in February. The Labor Force Participation Rate for March is expected at 65.5%. Forex traders can compare this to the Labor Force Participation Rate for February, reported at 65.7%.
The Canadian Ivey PMI for March is predicted at 56.1. Forex traders can compare this to the Canadian Ivey PMI for February, reported at 51.6.
The forecast for the USD/CAD remains cautiously bearish after this currency pair completed a breakdown below its ascending Ichimoku Kinko Hyo Cloud, which shows signs of upward exhaustion. Adding to the downside pressure is the contracting Tenkan-sen, but the Kijun-sen flatlined. Traders should also monitor the CCI after its breakout from extreme oversold territory. This technical indicator may drift moderately higher but lacks momentum to push above the zero barrier, which could reject it, leading to renewed selling pressure. Can bears regain complete control over the USD/CAD and 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 1.3450 to 1.3510 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.3480
- Take Profit Zone: 1.3260 – 1.3310
- Stop Loss Level: 1.3545
Alternative scenario:
Should price action for the USD/CAD breakout above 1.3510, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3545
- Take Profit Zone: 1.3600 – 1.3630
- Stop Loss Level: 1.3510
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