Feeling dollar bearish this week?
Here’s a simple trend pullback setup on USD/CAD you might wanna start off with.
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:
- Japanese final manufacturing PMI upgraded from 52.2 to 53.0
- Australian MI inflation gauge ticked higher from 0.4% to 0.5%
- Chinese Caixin manufacturing PMI down from 51.3 to 50.3
- Brisbane lockdown extended from Aug. 3 until Sunday
- Asian shares wobbly on Chinese PMI miss, crude oil retreats
Upcoming Potential Catalysts on the Economic Calendar:
- U.S. ISM manufacturing PMI at 2:00 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: USD/CAD
It’s NFP week y’all!
This means that leading U.S. jobs indicators would likely get a lot of market attention, and we’ve got the ISM manufacturing PMI lined up today.Analysts are expecting to see a small improvement from 60.6 to 60.8, reflecting a faster pace of expansion. However, a lower than expected result or a dip in the jobs component might still lead to a drop for the Greenback.
If that’s the case, USD/CAD might be able to resume its slide after this quick correction.
You see, the pair fell through short-term support at 1.2535 and seems to be making a pullback to this area. This lines up with the 61.8% Fib level and a falling trend line connecting the highs on its 1-hour time frame.
If resistance holds, the pair could slump back to the lows at 1.2420 or lower. A break past the area of interest, on the other hand, could signal that a reversal from the drop is due.
Apart from that, risk-off flows appear to be in play during the earlier trading sessions when China printed a lower than expected manufacturing PMI.