Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for July is predicted to show 200K job additions and an unemployment rate of 3.6%. Forex traders can compare this to the US NFP Report for June, which showed 209K job additions and an unemployment rate of 3.6%. Private Payrolls for July are predicted to show 179K job additions and Manufacturing Payrolls 5K job additions. Forex traders can compare this to Private Payrolls for June, which showed 149K job additions, and Manufacturing Payrolls, which showed 7K job additions. The Average Work Week for July is predicted at 34.4 hours. Forex traders can compare this to the Average Work Week for June, reported at 34.4 hours. Average Hourly Earnings for July are predicted to increase 0.3% monthly and 4.2% annualized. Forex traders can compare this to Average Hourly Earnings for June, which rose 0.4% monthly and 4.4% annualized. The Labor Force Participation Rate for July is predicted at 62.6%. Forex traders can compare this to the Labor Force Participation Rate for June, reported at 62.6%. Government Payrolls for July are predicted to show 0K job additions and the U6 unemployment rate at 6.8%. Forex traders can compare this to Government Payrolls for June, which showed 60K job additions and the U6 unemployment rate of 6.9%.
The Canadian Employment Report for July is predicted to show the addition of 21.1K jobs and an Unemployment Rate of 5.5%. Forex traders can compare this to the Canadian Employment Report for June, which showed the addition of 59.9K jobs and an Unemployment Rate of 5.4%. The Participation Rate for July is predicted at 65.6%. Forex traders can compare this to the Participation Rate for June, reported at 65.7%.
The Canadian Ivey PMI for July is predicted at 52.7. Forex traders can compare this to the Canadian Ivey PMI for June, reported at 50.2.
The forecast for the USD/CAD turned bearish after this currency pair advanced into its descending Ichimoku Kinko Hyo Cloud. Volatility could rise after the Kijun-sen and the Tenkan-sen flatlined. Traders should also monitor the CCI in extreme overbought territory after setting a higher high before losing upside momentum. This technical indicator began to reverse, and a breakdown below 100 could trigger a sell-off. Can bears overpower bulls and force the USD/CAD into its horizontal resistance area and a fresh 2023 low? 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 1.3310 to 1.3375 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.3345
- Take Profit Zone: 1.2985 – 1.3090
- Stop Loss Level: 1.3400
Alternative scenario:
Should price action for the USD/CAD breakout above 1.3375, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3400
- Take Profit Zone: 1.3460 – 1.3500
- Stop Loss Level: 1.3375
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
