Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for December is predicted to show 200K job additions and an unemployment rate of 3.7%. Forex traders can compare this to the US NFP Report for November, which showed 263K job additions and an unemployment rate of 3.7%. Private Payrolls for December are predicted to show 180K job additions, and Manufacturing Payrolls 10K job additions. Forex traders can compare this to Private Payrolls for November, which showed 221K job additions, and Manufacturing Payrolls, which showed 14K 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 0.4% monthly and 5.0% annualized. Forex traders can compare this to Average Hourly Earnings for November, which rose 0.6% monthly and 5.1% annualized.
US Factory Orders for November are predicted to drop 0.8% monthly. Forex traders can compare this to US Factory Orders for October, which increased by 1.0% monthly.
The US ISM Non-Manufacturing PMI for December is predicted at 55.0, and the ISM Non-Manufacturing Business Activity Index at 59.5. Forex traders can compare this to the US ISM Non-Manufacturing PMI for November, reported at 56.5, and to the ISM Non-Manufacturing Business Activity Index, reported at 64.7.
The Canadian Employment Report for December is predicted to show the addition of 8.0K jobs and an Unemployment Rate of 5.2%. Forex traders can compare this to the Canadian Employment Report for November, which showed the addition of 10.1K jobs and an Unemployment Rate of 5.1%.
The Canadian Ivey PMI for December is predicted at 51.0. Forex traders can compare this to the Canadian Ivey PMI for November, reported at 51.4.
The forecast for the USD/CAD remains bearish, with the descending Ichimoku Kinko Hyo Cloud maintaining increasing downside pressure after the Senkou Span A and the Senkou Span B began to move lower. Volatility could rise as bulls and bears square off with the Tenkan-sen and the Kijun-sen flat. Traders should monitor the CCI following its breakout from extreme oversold territory. This technical indicator may attempt to push above the zero barrier, from where it could accelerate to the downside, given the rising bearish momentum in price action. Can bears overpower bulls and force the USD/CAD 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 1.3510 to 1.3600 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.3565
- Take Profit Zone: 1.3225 – 1.3505
- Stop Loss Level: 1.3680
Alternative scenario:
Should price action for the USD/CAD breakout above 1.3600, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3680
- Take Profit Zone: 1.3750 – 1.3800
- Stop Loss Level: 1.3600
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