Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for October is predicted to show 180K job additions and an unemployment rate of 3.8%. Forex traders can compare this to the US NFP Report for September, which showed 336K job additions and an unemployment rate of 3.8%. Private Payrolls for October are predicted to show 158K job additions and Manufacturing Payrolls 10K job losses. Forex traders can compare this to Private Payrolls for September, which showed 263K job additions, and Manufacturing Payrolls, which showed 17K job additions. The Average Work Week for October is predicted at 34.4 hours. Forex traders can compare this to the Average Work Week for September, reported at 34.4 hours. Average Hourly Earnings for October are predicted to increase by 0.3% monthly and 4.0% annualized. Forex traders can compare this to Average Hourly Earnings for September, which rose 0.2% monthly and 4.2% annualized.
The Final US S&P Global Composite PMI for October is predicted at 51.0, and the Final US S&P Global Services PMI at 50.9. Forex traders can compare this to the US S&P Global Composite PMI for September, reported at 51.0, and the US S&P Global Services PMI at 50.1.
The US ISM Non-Manufacturing PMI for October is predicted at 53.0. Forex traders can compare this to the US ISM Non-Manufacturing PMI for September, reported at 53.6.
The Canadian Employment Report for October is predicted to show the addition of 22.5K jobs and an Unemployment Rate of 5.6%. Forex traders can compare this to the Canadian Employment Report for September, which showed the creation of 63.8K jobs and an Unemployment Rate of 5.5%.
The forecast for the USD/CAD remains bearish after its horizontal resistance area rejected an extension of the rally and resulted in a breakdown in this currency pair. Price action currently trades above its flat Kijun-sen and below its flat Tenkan-sen, with an increase in bearish pressures. The Ichimoku Kinko Hyo Cloud narrowed, and a bearish crossover is likely to follow, which could accelerate selling pressure on the USD/CAD. Traders should also monitor the CCI after a negative divergence in extreme overbought territory preceded a double breakdown below 100 and into negative territory. This technical indicator has plenty of downside potential and could lead price action lower. Can bears maintain control over the USD/CAD and force this currency pair 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 1.3700 to 1.3780 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.3730
- Take Profit Zone: 1.3415 – 1.3485
- Stop Loss Level: 1.3840
Alternative scenario:
Should price action for the USD/CAD breakout above 1.3780, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3840
- Take Profit Zone: 1.3880 – 1.3975
- Stop Loss Level: 1.3780
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
