Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for May is predicted to show 8,000K job losses and an unemployment rate of 19.8%. Forex traders can compare this to the US NFP Report for April, which showed 20,537K job additions and an unemployment rate of 14.7%. Private Payrolls for May are predicted to show 7,500K job losses and Manufacturing Payrolls 440K job losses. Forex traders can compare this to Private Payrolls for April, which showed 19,557K job losses and to Manufacturing Payrolls, which showed 1,330K job losses. The Average Work Week for May is predicted at 34.3 hours. Forex traders can compare this to the Average Work Week for April, which was reported at 34.2 hours. Average Hourly Earnings for May are predicted to increase by 1.0% monthly and by 8.5% annualized. Forex traders can compare this to Average Hourly Earnings for April, which increased by 4.7% monthly and by 7.9% annualized. The Labor Force Participation Rate for May is predicted at 60.3%. Forex traders can compare this to the Labor Force Participation Rate for April, which was reported at 60.2%.
The Canadian Employment Report for May is predicted to show the loss of 500.0K jobs and an Unemployment Rate of 15.0%. Forex traders can compare this to the Canadian Employment Report for April, which showed the loss of 1,993.8K jobs and an Unemployment Rate of 13.0%. US Consumer Credit for April is predicted at $20.00B. Forex traders can compare this to US Consumer Credit for March, which was reported at $12.04B.
The USD/CAD forecast remains bearish heading into today’s US May NFP data and Canadian employment report. Wednesday’s ADP surprised markets, but job losses in the US are predicted to linger over the economy longer than previously anticipated. More stimulus could be announced once the unemployment data passes 20%. After this currency pair collapsed through the Ichimoku Kinko Hyo Cloud, more downside is favored. Will bears keep the sell-off alive and push 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 1.3400 to 1.3500 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3465
- Take Profit Zone: 1.3100 – 1.3200
- Stop Loss Level: 1.3585
Should price action for the USD/CAD breakout above 1.3500 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3585
- Take Profit Zone: 1.3740 – 1.3820
- Stop Loss Level: 1.3500
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