Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US ADP Employment Change for October is predicted at 650K. Forex traders can compare this to the US ADP Employment Change for September, reported at 749K. The US Trade Balance for September is predicted at -$63.8B. Forex traders can compare this to the US Trade Balance for August, reported at -$67.1B. The US Final Markit Services PMI for October is predicted at 56.0, and the US Final Markit Composite PMI is predicted at 55.5. Forex traders can compare this to the US Markit Services PMI for September, reported at 54.6, and to the US Markit Composite PMI, reported at 54.3.
The US ISM Non-Manufacturing PMI for October is predicted at 57.5. Forex traders can compare this to the US ISM Non-Manufacturing PMI for September, reported at 57.8. The ISM Non-Manufacturing Business Activity Index for October is predicted at 62.0. Forex traders can compare this to the ISM Non-Manufacturing Business Activity Index for September, reported at 63.0. The Canadian Trade Balance for September is predicted at -C$2.60B. Forex traders can compare this to the Canadian Trade Balance for August, reported at -C$2.45B.
The forecast for the USD/CAD turned bearish after the acceleration into its descending Ichimoku Kinko Hyo Cloud. Forex traders await official election results from the 2020 US presidential election, where President Trump faces challenger Biden. Nine states have not reported results yet, with Trump leading in six of them. The US Dollar spike may not last before reverting to its longer-term trend. With the Kijun-sen flatlining, the Tenkan-sen starting a drift lower, and the CCI in neutral territory, can bears force the USD/CAD back 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 1.3250 to 1.3320 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3285
- Take Profit Zone: 1.2995 – 1.3045
- Stop Loss Level: 1.3350
Should price action for the USD/CAD breakout above 1.3320 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3350
- Take Profit Zone: 1.3420 – 1.3450
- Stop Loss Level: 1.3320
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