On Friday, May 6, at 15:30 Moscow time, the statistics update on employment in the US and Canada is expected, and the most anticipated figures are the United Stated Non-farm payrolls (NFP), Canada Employment Change and also the rates of unemployment of the U.S. and Canada.
It means that a new prospect to make money off trading the USDCAD pair is about appear again.
According to the forecasts, both the employment and the unemployment in the US and Canada will likely reduce.
Possible trading options:
1.If the forecasts turn out to be true, work on the pullbacks, using the data of the unemployment in Canada and/or the data of the NFP change. So, place a pending order SellLimit at a distance of 0.1% from the price at the moment of statistics update, then place a Take profit order at the price level or a bit higher at the moment of data release, and place a Stop Loss order at the level higher than the maximum of the previous day.
If the pending order for position opening isn’t executed within 8 hours, cancel it.
If the Take profit order isn’t executed within 8 hours, close the position by yourself.
2.In case there are multidirectional changes of the employment, catch the movement of the USDCAD pair in the first 15 minutes (that is 0.1-0.2% from the price at the moment of statistics update, which is about 120-260 points of profit). Place a Stop Loss order above the maximum of the previous day.
3.In case there are multidirectional changes of the unemployment rate, open at the moment the statistical data is updated, close after 3 or 8 hours (at 18:30 or 23:30 Moscow time). The expected profit is 0.1-0.2% of the price at the moment of data update (130-260 points of profit). Place a Stop Loss order above the maximum of the previous day.
Don't forget that volatility often increases with the publication of NFP! It is necessary to take into account the spread and follow the capital management rules!
Concerning the fundamental aspect, the economy of Canada is much more attractive than the US economy, which supports the decline of the USDCAD pair and suggests short positions:
A signal of a Bollinger reversal, that has already started to work, combined with the AD indicator from May 2 also signifies the continuation of the USDCAD pair decline.
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