The coast is clear in terms of top-tier releases today!
I’ll just keep an eye out for this USD/CAD pullback opportunity based on last Friday’s jobs releases.
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.S. economy added 528K jobs in July vs. 250K consensus
U.S. jobless rate improved from 3.6% to 3.5%
U.S. average hourly earnings rose 0.5% vs. 0.3% forecastCanadian economy lost 30.6K jobs in July vs. projected 14.2K gain
Canada’s jobless rate held steady at 4.9% instead of rising to 5.0%
Canadian Ivey PMI slid from 62.2 to 49.6 vs. projected dip to 60.3
Chinese trade surplus expanded from 650B CNY to 683B CNY vs. 600B CNY forecast
New Zealand quarterly inflation expectations slowed from 3.29% to 3.07%
Japanese Economy Watchers Sentiment index fell from 52.9 to 43.8 vs. 51.6 consensus
Swiss jobless rate unchanged at 2.2% as expected
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone Sentix investor confidence index at 8:30 am GMT
U.K. BRC retail sales monitor at 11:01 pm GMT
Australian Westpac consumer sentiment index at 12:30 am GMT (Aug. 9)
Australian NAB business confidence index at 1:30 am GMT (Aug. 9)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: USD/CAD
ICYMI, Uncle Sam reported a boom in hiring for July while Canada’s jobs report was a total bust.
These contrasting employment figures were enough to push USD/CAD out of its short-term descending channel, which means that a reversal from the trend is in the cards.
If you’re hoping to jump in at a better price, then you might be in luck!The pair is in the middle of a correction from its strong breakout move, and the Fib tool shows where more buyers might be hanging out.
In particular, the area of interest around the 50% to 61.8% Fib levels might be a good entry point since it lines up with the former channel top and the dynamic support at the moving averages.
Oh, and don’t forget that the moving averages just made a bullish crossover to confirm that more gains are likely!
Stochastic has a bit more room to move south before indicating exhaustion among sellers, so I’d probably wait for the oscillator turn higher before going long.
Just make sure you keep tabs on the headlines to gauge if market sentiment would stay in this trade’s favor!