Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for December is predicted to show 170K job additions and an unemployment rate of 3.8%. Forex traders can compare this to the US NFP Report for November, which showed 199K job additions and an unemployment rate of 3.7%. Private Payrolls for December are predicted to show 130K job additions and Manufacturing Payrolls 5K job gains. Forex traders can compare this to Private Payrolls for November, which showed 150K job additions, and Manufacturing Payrolls, which showed 38K job additions. The Average Work Week for December is predicted at 34.4 hours. Forex traders can compare this to the Average Work Week for November, reported at 34.4 hours. Average Hourly Earnings for December are predicted to increase by 0.3% monthly and 3.9% annualized. Forex traders can compare this to Average Hourly Earnings for November, which rose 0.4% monthly and 4.0% annualized.
US Factory Orders for November are predicted to rise by 1.6% monthly. Forex traders can compare this to US Factory Orders for October, which dropped by 3.6% monthly.
The US ISM Non-Manufacturing PMI for November is predicted at 52.6. Forex traders can compare this to the US ISM Non-Manufacturing PMI for October, reported at 52.7. Traders should focus on the Business Activity, Employment, New Orders, and Prices sub-components.
The Canadian Employment Report for December is predicted to show the addition of 13.5K jobs and an Unemployment Rate of 5.9%. Forex traders can compare this to the Canadian Employment Report for November, which showed the addition of 24.9K jobs and an Unemployment Rate of 5.8%.
The Canadian Ivey PMI for December is predicted at 55.0. Forex traders can compare this to the Canadian Ivey PMI for November, reported at 54.7.
The forecast for the USD/CAD remains cautiously bullish after this currency pair broke out above its horizontal support area. Price action now trades above its flat Tenkan-sen but below its flat Kijun-sen, with growing upside momentum for another breakout. The Ichimoku Kinko Hyo Cloud continues to move lower, with the Senkou Span A and the Senkou Span B descending, suggesting volatility could increase as bulls and bears wrestle for control. Traders should also monitor the CCI following its double breakout from extreme oversold territory and above zero. This technical indicator has plenty of upside potential to pull this currency pair higher. Can bulls maintain control over the USD/CAD and pressure price action into its horizontal resistance 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 breakout above the 1.3335 to 1.3400 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long position
- Entry Level: Long Position @ 1.3365
- Take Profit Zone: 1.3535 – 1.3585
- Stop Loss Level: 1.3290
Alternative scenario:
Should price action for the USD/CAD breakdown below 1.3335, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3290
- Take Profit Zone: 1.3170 – 1.3240
- Stop Loss Level: 1.3335
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