USDCAD neutral

Nonfarm Payrolls and employment in Canada — catch the fast and strong signal!

02 august 2022 52
Elena_Berseneva
Elena_Berseneva

Listed among the best MarketCheese authors
1st in the segments "Indices" and "Metals"
2nd in the segments "Currencies" and "US stocks"
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On the first Friday of the month, the 5th of August at 15:30 Moscow time we are waiting again for the update of the statistics on the labor market of the USA and Canada, namely Nonfarm Payrolls (NFP) and Employment Change in Canada, and also about the level of unemployment in USA and Canada


And again, we have a chance to make money with a USDCAD pair.


According to forecasts, Nonfarm Payrolls will decrease, employment in Canada will increase, unemployment in the USA won't change, and it will increase in Canada.

 


Possible options to enter and exit the market:

 

1. Expectations concerning employment have been satisfied. 

 

We trade on the differently directed changes and catch the decrease of the USDCAD pair in the first 15 minutes (expected profitability is 0.1-0.2% and more). 


Place the protection order Stop-Loss higher than the maximum of the previous day. 


 

2. Employment in Canada stays the same.

 

We trade on the rollbacks based on the data about the changing NFP. This means, we place the pending order Sell Limit (if NFP will decrease) or Buy Limit (if NFP will increase) at a distance of 0.1-0.15% from the price at the moment of updating.   

 

Place the target order Take profit on the price level at the moment of data appearance or a little bit above/below. 


Place the protection order Stop-Loss above maximum/below minimum of the previous day. 


If the open order won’t work within 8 hours, delete it.

If the Take profit order won’t work within 8 hours, close the position by yourself.


 

3. In case of the differently directed changes in unemployment levels, i.e. if the unemployment decreases in USA and increases in Canada, we open the long position at the moment of statistics’ updating (open the short position, if the unemployment increases in the USA and decreases in Canada), open it after 3 or 8 hours (at 18:30 or 23:30 Moscow time). The expected return of the trade is 0,1-0,2%

 

Place the Stop-Loss order below/above the level of the previous day.


 

4. Unemployment in the USA didn’t change.

 

We trade on the rollbacks based on the data concerning unemployment in Canada. 

 

This means, we place the pending order Sell Limit (if the unemployment in Canada will decrease) and Buy Limit (if unemployment in Canada will increase) on the 0,1-0,15% distance from the price at the time of statistics’ updating. 

 

Target order Take profit is on the price’s level at the moment of data appearance or a little bit above/below. 

 

Protection order Stop-Loss is above maximum/below minimum of the previous day.


If the open order won’t work within 8 hours, delete it.

If the Take profit order won’t work within 8 hours, close the position by yourself.


 

5. Employment and/or unemployment in both countries increase or decrease.

 

Abstain from entering the market.

 



As for the fundamental aspects, today the USA economy looks much more attractive than the Canadian one, and this fact indicates a small growth of USDCAD and in the medium term, it implies long positions. 


 


Don’t forget usually the volatility strongly increases during the publication of NFP data!

Also, remember about the spread and money management rules! 

 

 


Warning!

Trading on financial markets implies high levels of risk and can lead to a loss of investment capital. The MarketCheese team isn’t responsible for the possible loss of Your investment funds.

Elena_Berseneva
Elena_Berseneva

Listed among the best MarketCheese authors
1st in the segments "Indices" and "Metals"
2nd in the segments "Currencies" and "US stocks"
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