Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for April is predicted to show 978K job additions and an unemployment rate of 5.8%. Forex traders can compare this to the US NFP Report for March, which showed 916K job additions and an unemployment rate of 6.0%. Private Payrolls for April are predicted to show 893K job additions and Manufacturing Payrolls 55K job additions. Forex traders can compare this to Private Payrolls for March, which showed 780K job additions, and to Manufacturing Payrolls, which showed 53K job additions. The Average Work Week for April is predicted at 34.9 hours. Forex traders can compare this to the Average Work Week for March, reported at 34.9 hours. Average Hourly Earnings for April are predicted to increase by 0.1% monthly and to decrease 0.4% annualized. Forex traders can compare this to Average Hourly Earnings for March, which decreased 0.1% monthly, and increased 4.2% annualized.
US Wholesale Inventories for March are predicted to increase 1.4% monthly, and Wholesale Trade Sales 1.0% monthly. Forex traders can compare this to US Wholesale Inventories for February, which increased 0.9% monthly, and to US Wholesale Trade Sales, which decreased 0.8% monthly. US Consumer Credit for March is predicted at $20.00B. Forex traders can compare this to US Consumer Credit for February, reported at $27.58B.
The Canadian Employment Report for April is predicted to show the loss of 175.0K jobs and an Unemployment Rate of 7.8%. Forex traders can compare this to the Canadian Employment Report for March, which showed the addition of 303.1K jobs and an Unemployment Rate of 7.5%. The Canadian Ivey PMI for April is predicted at 60.5. Forex traders can compare this to the Canadian Ivey PMI for March, reported at 72.9.
The forecast for the USD/CAD remains bearish after price action moved below the 1.2200 support level, driven to the downside by its descending Ichimoku Kinko Hyo Cloud. Today’s US NFP report is expected to spike volatility, but the overall correction may extend. The Tenkan-sen and the Kijun-sen continue to descend, but traders should wait for the CCI to move out of extreme oversold territory before selling the rally. Can bear force the USD/CAD into its next horizontal support area following today’s US NFP report? 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 1.2140 to 1.2200 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2170
- Take Profit Zone: 1.1800 – 1.1890
- Stop Loss Level: 1.2280
Should price action for the USD/CAD breakout above 1.2200, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2280
- Take Profit Zone: 1.2395 – 1.2455
- Stop Loss Level: 1.2200
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