Source: PaxForex Premium Analytics Portal, Fundamental Insight

The US NFP Report for June is predicted to show 700K job additions and an unemployment rate of 5.7%. Forex traders can compare this to the US NFP Report for May, which showed 559K job additions and an unemployment rate of 5.8%. Private Payrolls for June are predicted to show 600K job additions and Manufacturing Payrolls 28K job additions. Forex traders can compare this to Private Payrolls for May, which showed 492K job additions, and to Manufacturing Payrolls, which showed 23K job additions. The Average Work Week for June is predicted at 34.9 hours. Forex traders can compare this to the Average Work Week for May, reported at 34.9 hours. Average Hourly Earnings for June are predicted to increase 0.4% monthly and 3.7% annualized. Forex traders can compare this to Average Hourly Earnings for May, which increased 0.5% monthly and 2.0% annualized. 

The US Trade Balance for May is predicted at -$71.4B. Forex traders can compare this to the US Trade Balance for April, reported at -$68.9B. US Factory Orders for May are predicted to increase 1.6% monthly. Forex traders can compare this to US Factory Orders for April, which decreased 0.6% monthly.

Canadian Building Permits for May are predicted to decrease 0.3% monthly. Forex traders can compare this to Canadian Building Permits for April, which decreased 0.5% monthly. The Canadian Trade Balance for May is predicted at C$0.37B. Forex traders can compare this to the Canadian Trade Balance for April, reported at C$0.59B.

The forecast for the USD/CAD turned bearish after this currency pair broke out above its Ichimoku Kinko Hyo Cloud, retreated, and advanced one more time. It is now testing a minor resistance level, from where a renewed sell-off is expected after today’s US NFP report. The Kijun-sen remains flat, with the Tenkan-sen descending, suggesting bears remain in control. After the CCI moved back into extreme overbought territory, a negative divergence is expected to form. Can bears force the USD/CAD into a correction until price action 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 1.2400 to 1.2485 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.2435
• Take Profit Zone: 1.2000 – 1.2055
• Stop Loss Level: 1.2555

Should price action for the USD/CAD breakout above 1.2485, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.2555
• Take Profit Zone: 1.2650– 1.2700
• Stop Loss Level: 1.2485

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