Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for June is predicted to show 191K job additions and an unemployment rate of 4.0%. Forex traders can compare this to the US NFP Report for May, which showed 272K job additions and an unemployment rate of 4.0%. Private Payrolls for June are predicted to show 160K job additions and Manufacturing Payrolls 6K job gains. Forex traders can compare this to Private Payrolls for May, which showed 229K job additions, and Manufacturing Payrolls, which showed 8K job additions. The Average Work Week for June is predicted at 34.3 hours. Forex traders can compare this to the Average Work Week for May, reported at 34.3 hours. Average Hourly Earnings for June are expected to increase by 0.3% monthly and 3.9% annualized. Forex traders can compare this to Average Hourly Earnings for May, which rose 0.4% monthly and 4.1% annualized.
The Canadian Employment Report for June is predicted to show the addition of 27.3K jobs and an Unemployment Rate of 6.3%. Forex traders can compare this to the Canadian Employment Report for May, which showed the addition of 26.7K jobs and an Unemployment Rate of 6.2%.
The Canadian Ivey PMI for June is predicted at 53.0. Forex traders can compare this to the Canadian Ivey PMI for May, reported at 52.0.
The forecast for the USD/CAD turned cautiously bullish after this currency pair corrected into its horizontal support area this week. The Kijun-sen and the Tenkan-sen have flatlined following a bearish crossover, suggesting more volatility ahead. The Ichimoku Kinko Hyo Cloud adds to volatility after the descending Senkou Span A has moved below the flat Senkou Span B. Traders should also monitor the CCI in extreme oversold territory with a minor upward move. A breakout above -100 could trigger the next leg higher. Can bulls regain control over the USD/CAD and push price action into its horizontal resistance area from where the preceding sell-off began? 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 1.3585 to 1.3630 zone, PaxForex recommends the following trade setup:
- Time frame: D1
- Recommendation: Long position
- Entry Level: Long Position @ 1.3610
- Take Profit Zone: 1.3745 – 1.3780
- Stop Loss Level: 1.3585
Alternative scenario:
Should price action for the USD/CAD break down below 1.3585, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3535
- Take Profit Zone: 1.3420 – 1.3480
- Stop Loss Level: 1.3585
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