Potential 24 Hour Setups
|
Currency Pair |
Potential Target |
Pivot Support |
Pivot Resistance |
|
Pending USDCAD Long |
1.0610 |
1.0371 |
1.0721 |
*Trade updates during the course of the day will be provided through our real time news page.
Review of Price Action on the Previous Day’s Trade
|
Currency |
Entry |
Potential Target |
Close |
|
131.213 |
130.4500 |
130.4500 |
*Price Action is From My Last Report on August 30th
|
The USDCAD is witnessing increased volatility ahead of tomorrow’s U.S nonfarm payrolls report. As of late, economists are forecasting payrolls to drop some 100K for the month of August, while expecting the unemployment rate to rise to 9.6 percent from 9.5 percent. Taking a look at last month’s disappointing labor force report on August 8th, the USDCAD rallied throughout the North American session as traders sought safety amid uncertainty in the world’s largest economy. With the markets looking for direction, I do not rule out a similar reaction subsequent to tomorrow’s release. At the same time, taking a look at the USDCAD daily chart, the pair has been range bound for the past couple of sessions, ranging between the 23.6 percent and 38.2 percent Fibonacci retracements, with price action now hovering above the latter. At the same time, the pair looks to have found support on the rising trend line. All in all, tomorrow’s labor force report from the U.S. may set the stage for a potential profitable trade if figures tumble more than expected, in conjunction with the previous reading displaying a downward revision. |
USDCAD 15 Minute Chart  Charts Created Using FXCM’s Strategy Trader Close: 1.05214 SSI: 1.1467 |
Retail positioning relates to our speculative sentiment index which illustrates where traders are at in the market. The larger the retail positioning is within the highlighted area, the more likely it is that longs exceed shorts or vice versa. We will look to use this indicator in conjunction with other technical developments to dictate price action over the next 24 hours.
Every day at 16:00 GMT, we analyze potential 24 hour trade set ups. The trade is no longer valid if it is not triggered by 16:00 GMT the next day. Good luck trading!
Written by Michael Wright, Currency Analyst
To Receive Future Articles by Email, please contact me at mwright@fxcm.com
Michael Wright is the author of FX Headlines, Fundamentals vs. Technical’s, Weekly Spotlight, Intraday Trading, and Forex Trading Weekly Forecast
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