USDCAD Testing Pivot Level on NFP, Canada Jobs Report & OPEC

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USDCAD Testing Pivot Level on NFP, Canada Jobs Report & OPEC

7:45 AM EST: USDCAD Testing Pivot Level on NFP, Canada Jobs Report & OPEC Meetings

USDCAD Daily: Unable to break above Pivot remains below Ichimoku. Correction towards middle 

USDCAD Technical Analysis

Ahead of their respective economies’ jobs report, the USD/CAD pair is testing a key resistance level at 1.25 with a prior bullish sentiment after breaking above the  Ichimoku cloud. The pair has yet to reach the upper Bollinger Band so there is still room for further rallies. If the pair is unable to break above this level, we could see drops back to the 23% Fibonacci level at 1.2180.

Economic Points

US Non Farm Payrolls (NFP) Report

Hiring in May was expected to be about the same as April’s pace, but Friday’s employment report is much more important to the Fed’s rate decision process and could therefore have an outsize impact on markets.

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The government’s May jobs report, to be released at 8:30 a.m. EST, also lands against a backdrop of high anxiety in global markets after a stunning bond rout this week drove rates higher at a fast and furious pace. While traders believe yields may be topping for now, a nervous stock market sold off sharply ahead of the jobs number and as Greece comes down to the wire on debt talks.

Economists expect 225,000 nonfarm payrolls, up slightly from April’s 223,000 and an unchanged unemployment rate of 5.4 percent, according to Thomson Reuters. Average hourly wages are expected to rise a modest 0.2 percent.

Canada’s Jobs Report

Unemployment rate is expected to be unchanged at 6.8%

OPEC Meeting

All day today 13 oil-rich nations discuss future of oil in Vienna. Oil prices have direct impact on currencies especially the US dollar.

So far today, oil group OPEC agreed to stick by its policy of unconstrained output for another six months, setting aside warnings of a second lurch lower in prices as some members such as Iran look to ramp up exports.

All the above could set the direction the the US dollar – Canadian dollar pair 

USDCAD Trading idea

Wait for confirmation for long term trades. Enter after the weekend to prevent premature stop-loss.

Where I’m setting my stops and limits:

Support Levels Turning Point Resistance Levels
1.1815 1.2180 1.28
1.1520 1.2500 1.27