USD/CAD Daily: Unable to break above Pivot remains below Ichimoku. Correction towards middle Bollinger Band
Trading idea: None.
Technical Analysis: Although the pair seems to have completed an Elliott Wave pattern, it seems the bearish sentiment is here to stay for a bit more towards 38% Fibonacci level. The pair was unable to break above a key pivot levels and remains below the Ichimoku cloud.
Economic Events: Bank Holiday in Canada
Fundamentals: The Canadian economy lost 19.7K jobs for the month of April, its worst drop in employment in eight months. That’s way worse than the projected 4.5K decline and enough to erase most of the previous month’s 28.7K gain. But don’t let the dismal headline figure fool ya! Underlying components of the jobs report actually reflect significant improvements in the country’s labor situation.
Full-time hiring jumped by an impressive 46.9K in April but this was offset by the 66.5K tumble in part-time positions, spurred mostly by layoffs in the retail and construction sectors. Apparently, store closures of Target and Best Buy Canada were to blame for the sharp drop in part-time employment, which analysts dismissed as a one-off factor.
The natural resources industry, which has seen consecutive months of negative jobs figures due to the oil price slump, started to show signs of life. In Alberta, the gold mine of oil production in Canada, overall employment picked up by 12.5K in April. While oil companies in this region still shed roughly 3.5K jobs during the period, the pace of job declines has been steadily slowing and may have already bottomed out.
Where I’m setting my stops and limits: