Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for August is predicted to show 164K job additions and an unemployment rate of 4.2%. Forex traders can compare this to the US NFP Report for July, which showed 114K job additions and an unemployment rate of 4.3%. Private Payrolls for August are predicted to show 139K job additions and Manufacturing Payrolls 0K job gains. Forex traders can compare this to Private Payrolls for July, which showed 97K job additions, and Manufacturing Payrolls, which showed 1K job gains. The Average Work Week for August is predicted at 34.3 hours. Forex traders can compare this to the Average Work Week for July, reported at 34.2 hours. Average hourly earnings for August are predicted to increase 0.3% monthly and 3.7% annualized. Forex traders can compare this to Average Hourly Earnings for July, which rose 0.2% monthly and 3.6% annualized.
The Canadian Employment Report for August is predicted to show the addition of 23.7K jobs and an Unemployment Rate of 6.5%. Forex traders can compare this to the Canadian Employment Report for July, which showed the loss of 2.8K jobs and an Unemployment Rate of 6.4%.
The Canadian Ivey PMI for August is predicted at 55.3. Forex traders can compare this to the Canadian Ivey PMI for July, reported at 57.6.
The forecast for the USD/CAD remains bearish, with the descending Senkou Span A and the descending Senkou Span B of the Ichimoku Kinko Hyo Cloud applying downside pressure. This currency pair trades below its downward-moving Tenkan-sen, following a bearish crossover below its flat Kijun-sen. Traders should also monitor the CCI after completing a breakout from extreme oversold territory but failing to move above zero, confirming the absence of bullish pressures. This technical indicator has plenty of room for downside to lead price action lower. Can bears maintain control over the USD/CAD and force this currency pair into its horizontal support area and a fresh 2024 low? 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 1.3465 to 1.3525 zone, PaxForex recommends the following trade setup:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.3495
- Take Profit Zone: 1.3250 – 1.3350
- Stop Loss Level: 1.3565
Alternative scenario:
Should price action for the USD/CAD break out above 1.3525, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3565
- Take Profit Zone: 1.3630 – 1.3690
- Stop Loss Level: 1.3525
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