Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for September is predicted to show 500K job additions and an unemployment rate of 5.1%. Forex traders can compare this to the US NFP Report for August, which showed 235K job additions and an unemployment rate of 5.2%. Private Payrolls for September are predicted to show 455K job additions and Manufacturing Payrolls 25K job additions. Forex traders can compare this to Private Payrolls for August, which showed 243K job additions, and Manufacturing Payrolls, which showed 37K job additions. The Average Work Week for September is predicted at 34.7 hours. Forex traders can compare this to the Average Work Week for August, reported at 34.7 hours. Average Hourly Earnings for September are predicted to increase 0.4% monthly and 4.6% annualized. Forex traders can compare this to Average Hourly Earnings for August, which increased 0.6% monthly and 4.3% annualized.
US Wholesale Trade Sales for August are predicted to increase 1.0% monthly. Forex traders can compare this to US Wholesale Trade Sales for July, which increased 2.0% monthly.
The Canadian Employment Report for September is predicted to show the creation of 65.0K jobs and an Unemployment Rate of 6.9%. Forex traders can compare this to the Canadian Employment Report for August, which showed the creation of 90.2K jobs, and an Unemployment Rate of 7.1%.
The forecast for the USD/CAD remains bearish, driven by the descending Tenkan-sen. Traders should expect a rise in volatility and await the release of today’s US NFP and Canadian employment data. The Kijun-sen remains flat, and the Ichimoku Kinko Hyo Cloud recorded a top with the Senkou Span A descending. After the CCI moved into extreme oversold territory, a false breakout is likely to follow before this technical indicator can correct to a lower low. Will bears gain the upper hand and pressure the USD/CAD 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 1.2490 to 1.2625 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2555
- Take Profit Zone: 1.2250 – 1.2330
- Stop Loss Level: 1.2685
Should price action for the USD/CAD breakout above 1.2625, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2685
- Take Profit Zone: 1.2760 – 1.2820
- Stop Loss Level: 1.2625
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