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The latest employment updates for both the U.S. and Canada tomorrow make the textbook ranges on USD/CAD the patterns to watch into the weekend!

Intermarket Snapshot

Equity Markets Bond Yields Commodities & Crypto
DAX: 11963.62 -0.14%
FTSE: 7267.91 +0.66%
S&P 500: 2825.86 -0.01%
DJIA: 25552.34 -0.27%
US 10-yr 2.097% -0.026
Bund 10-YR -0.225% -0.003
UK 10-YR: 0.847% -0.019
JPN 10-YR: -0.125% +0.006
Oil: 51.78 +0.19%
Gold: 1341.50 +0.59%
Bitcoin: 7693.79 -1.28%
Etherium: 243.34 -1.14%

Fresh Market Headlines & Economic data:

Upcoming Potential Catalysts on the Forex Calendar:

  • Australia construction index at 11:30 pm GMT
  • Japan household spending & earnings at 12:30 am GMT (June 7)
  • Japan leading indicators at 6:00 am GMT (June 7)
  • Swiss unemployment rate at 6:45 am GMT (June 7)
  • German industrial production & trade balance at 7:00 am GMT (June 7)
  • Canada employment at 1:30 pm GMT (June 7)
  • U.S. employment at 1:30 pm GMT (June 7)

What to Watch: USD/CAD

USD/CAD 1-Hour Forex Chart
USD/CAD 1-Hour Forex Chart

It’s highly likely we’ll see a short-term burst of volatility for both the U.S. dollar and Canadian dollar tomorrow as the latest employment updates come from both countries. The U.S. report will likely be the bigger influence on the financial markets, and my main man Forex Gump did put together a sweet guide for tomorrow’s numbers. Check it out here to help you get ready for the top tier event.

And the bias for this pair is really based on what we get for tomorrow, but what’s great about the recent price action is that it’s pretty simple to find breaking and reversal points to play which ever situation pops up. USD/CAD has laid down very clear levels support and resistance over the past few months, usually around the major psychological levels.

Right now, the pair is testing the major psychological area of 1.3300, and it’s likely to hang around this area until tomorrow’s events as traders wait for the top tier data. If we see the combination of weak U.S. jobs vs. strong Canadian jobs update, it’s likely a break of this area will draw in momentum sellers for some short-term pips. And vice versa, if Canadian jobs data disappoints while the U.S. surprises to the upside, we’ll likely see this area hold, not only on fundie situation, but likely on some profit taking as the bears have had a pretty good week in this pair given its 100 pip move lower since Monday.