Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for June is predicted to show 268K job additions and an unemployment rate of 3.6%. Forex traders can compare this to the US NFP Report for May, which showed 390K job additions and an unemployment rate of 3.6%. Private Payrolls for June are predicted to show 240K job additions and Manufacturing Payrolls 15K job additions. Forex traders can compare this to Private Payrolls for May, which showed 333K job additions, and Manufacturing Payrolls, which showed 18K job additions. The Average Work Week for June is predicted at 34.6 hours. Forex traders can compare this to the Average Work Week for May, reported at 34.6 hours. Average Hourly Earnings for June are predicted to increase 0.3% monthly and 5.0% annualized. Forex traders can compare this to Average Hourly Earnings for May, which rose 0.3% monthly and 5.2% annualized.
US Preliminary Wholesale Trade Sales for May are predicted to increase 0.9% monthly. Forex traders can compare this to US Wholesale Trade Sales for April, which rose 0.7% monthly. US Consumer Credit for May is predicted at $31.90B. Forex traders can compare this to US Consumer Credit for April, reported at $38.07B.
The Canadian Employment Report for June is predicted to show the addition of 23.5K jobs and an Unemployment Rate of 5.1%. Forex traders can compare this to the Canadian Employment Report for May, which showed the addition of 39.8K jobs and an Unemployment Rate of 5.1%. The Participation Rate for June is predicted at 65.3%. Forex traders can compare this to the Participation Rate for May, reported at 65.3%.
The forecast for the USD/CAD remains bearish after this currency pair moved into its horizontal resistance area, which rejected price action three times. Confirming the lack of bullishness are the flat Kijun-sen and the flat Tenkan-sen. The Ichimoku Kinko Hyo Cloud adds to the bearish outlook after the Senkou Span B flatlined and the Senkou Span A began moving lower. Traders should also monitor the CCI after it recorded a lower high in extreme overbought territory, followed by a breakdown. A move below zero could trigger more selling in this currency pair. Can bears regain 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 1.2950 to 1.3080 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.3010
- Take Profit Zone: 1.2520 – 1.2605
- Stop Loss Level: 1.3160
Alternative scenario:
Should price action for the USD/CAD breakout above 1.3080, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3160
- Take Profit Zone: 1.3245 – 1.3320
- Stop Loss Level: 1.3080
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