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The London session is light on potentially market-moving economic releases, so I’m looking ahead to Canada’s jobs data and its possible impact on USD/CAD.

Are you also looking to trade the Loonie today?

Before I show you my setup, lemme list down the top Asian session headlines you might have missed:

Currency Snapshot

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • France’s industrial production at 6:45 am GMT
  • Italy’s industrial production at 8:00 am GMT
  • European Council’s meetings ongoing
  • Canada’s jobs report at 12:30 pm GMT

What to Watch: USD/CAD

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

USD/CAD is flirting with the 1.3600 major psychological handle, which is juuuust above a descending channel resistance on the 1-hour time frame.

The “breakout” could gain traction today if Canada prints worse-than-expected jobs numbers. Word around is that markets are looking for a net jobs increase of 600,000 and for the unemployment rate to chill from 13.7% to 11.9% in June.

If labor market numbers disappoint, or if coronavirus concerns continue to drive traders into buying the U.S. dollar, then we could see USD/CAD hit 1.3650 as the pair’s average daily volatility suggests.

If Canada’s release surprises to the upside, however, or if we see a bit of profit-taking ahead of the weekend, then USD/CAD could drop back inside the channel and trade closer to the 100 or 200 SMAs.

What do you think? Are we looking at an upside breakout for USD/CAD?