Source: PaxForex Premium Analytics Portal, Fundamental Insight

The US NFP Report for May is predicted to show 650K job additions and an unemployment rate of 5.9%. Forex traders can compare this to the US NFP Report for April, which showed 266K job additions and an unemployment rate of 6.1%. Private Payrolls for May are predicted to show 600K job additions and Manufacturing Payrolls 24K job additions. Forex traders can compare this to Private Payrolls for April, which showed 218K job additions, and to Manufacturing Payrolls, which showed 18K job losses. The Average Work Week for May is predicted at 35.0 hours. Forex traders can compare this to the Average Work Week for April, reported at 35.0 hours. Average Hourly Earnings for May are predicted to increase 0.2% monthly and 1.6% annualized. Forex traders can compare this to Average Hourly Earnings for April, which increased 0.7% monthly and 0.3% annualized. 

The Canadian Employment Report for May is predicted to show the loss of 20.0K jobs and an Unemployment Rate of 8.2%. Forex traders can compare this to the Canadian Employment Report for April, which showed the loss of 207.1K jobs and an Unemployment Rate of 8.1%. US Factory Orders for April are predicted to decrease by 0.2% monthly. Forex traders can compare this to US Factory Orders for March, which increased by 1.1% monthly.

The forecast for the USD/CAD remains bearish after price action paused its sell-off while technical indicators continue to flash sell signals. Forex traders should expect more downside and a rise in volatility, with the Tenkan-sen and Kijun-sen flat, with a bearish bias. The descending Ichimoku Kinko Hyo Cloud supports more downside, and the CCI spiked into extreme overbought territory. This currency pair may try to push higher before succumbing to a renewed sell-off. Will bears maintain control over the USD/CAD and pressure 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 1.2075 to 1.2175 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.2120
• Take Profit Zone: 1.1800 – 1.1890
• Stop Loss Level: 1.2220

Should price action for the USD/CAD breakout above 1.2175, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.2220
• Take Profit Zone: 1.2385 – 1.2455
• Stop Loss Level: 1.2175

Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.