Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for January is predicted to show 150K job additions and an unemployment rate of 3.9%. Forex traders can compare this to the US NFP Report for December, which showed 199K job additions and an unemployment rate of 3.9%. Private Payrolls for January are predicted to show 150K job additions and Manufacturing Payrolls 25K job additions. Forex traders can compare this to Private Payrolls for December, which showed 211K job additions, and Manufacturing Payrolls 26K job additions. The Average Work Week for January is predicted at 34.7 hours. Forex traders can compare this to the Average Work Week for December, reported at 34.7 hours. Average Hourly Earnings for January are predicted to increase 0.5% monthly and 5.2% annualized. Forex traders can compare this to Average Hourly Earnings for December, which increased 0.6% monthly and 4.7% annualized.
The Canadian Employment Report for January is predicted to show the loss of 117.5K jobs and an Unemployment Rate of 6.2%. Forex traders can compare this to the Canadian Employment Report for December, which showed the creation of 54.7K jobs, and an Unemployment Rate of 5.9%.
The forecast for the USD/CAD remains bearish after this currency pair was rejected by the Senkou Span A of its gradually descending Ichimoku Kinko Hyo Cloud. Traders should prepare for a volatile session following the release of US NFP and Canadian employment data. The Kijun-sen and the Tenkan-sen flatlined, confirming a standoff between bulls and bears. After the CCI retreated from extreme overbought territory and moved below 100, selling pressure has intensified. Can bears continue to force the USD/CAD lower until it reaches 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 1.2635 to 1.2715 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.2685
- Take Profit Zone: 1.2385 – 1.2450
- Stop Loss Level: 1.2760
Alternative scenario:
Should price action for the USD/CAD breakout above 1.2715, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2760
- Take Profit Zone: 1.2825 – 1.2870
- Stop Loss Level: 1.2715
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