Planning on trading the NFP and Canada’s jobs release?
Here’s a neat USD/CAD break-and-retest setup to keep tabs on.
Before moving on, ICYMI, yesterday’s watchlist checked out GBP/USD’s rising channel pullback ahead of the BOE decision. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.S. Oct ISM services PMI slumped from 56.7 to 54.4 vs. 55.5 forecast
U.S. factory orders ticked higher from 0.2% to 0.3% m/m in Sept
G7 coalition agreed to set fixed price for Russian oil
China rumored to be scaling back zero COVID policy
Australia’s AIG construction index dipped from 46.5 to 43.3 in Oct
Australian retail sales rose another 0.6% m/m in Sept as expected
Asian markets slightly higher on China reopening hopes, awaiting NFP
German factory orders tumbled 4.0% m/m in Sept vs. projected 0.5% dip
Canadian employment change at 12:30 pm GMT
U.S. non-farm payrolls report at 12:30 pm GMT
Canadian Ivey PMI at 2:00 pm GMT
FOMC member Collins’ speech at 2:00 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: USD/CAD
USD/CAD 1-hour Forex Chart
Who’s excited to trade the NFP?
In a few hours, Uncle Sam will be printing the latest employment figures, possibly reporting another slowdown in hiring for October.
But will we see yet another upside surprise?
If so, the U.S. dollar might be poised to resume its rally against its rivals, as this would keep bulls looking forward to more rate hikes.
USD/CAD looks ready to take advantage of a potential bounce, as the pair is retreating to an area of interest visible on its short-term time frames.
Price is pulling back to the former descending trend line, which happens to coincide with the 61.8% Fib and 100 SMA dynamic inflection point.
Oh, and did I mention that a bullish moving average crossover just took place, too?
Stochastic is already in the oversold region to indicate that sellers are about to take a break and let buyers regain the upper hand. If that’s the case, USD/CAD could make its way back up to the swing high near the 1.3800 handle in no time.
Don’t forget that Canada is also scheduled to release its own jobs report today. The economy is slated to print a slower 11K gain in hiring versus the previous 21.1K increase.
Better stand ready to make adjustments in case we see surprises, though!