Baxia Markets
March 08, 2024

Traders Await US NFP: Key Updates for USDCAD Traders

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Amidst anticipation of key economic data releases, traders have turned their focus to the US Non-Farm Payrolls (NFP), unemployment rates in both the US and Canada. Analysts predict a rise in Canada's unemployment rate, a decline in US NFP compared to previous data, with no change expected in the US unemployment rate. As markets await these releases, price action remains relatively subdued, hinting at cautious optimism.

Traders Await US NFP: Key Updates for USDCAD Traders

The Bollinger Bands, contracting recently, reflect diminishing market volatility. Over the past two trading sessions, prices have consistently hugged the lower band, signaling a prevailing bearish sentiment. Key resistance levels loom at 1.3470, alongside the EMA 50 and EMA 200.

EMA indicators further underline the bearish tone, with both EMAs expanding, indicating growing and robust bearish momentum. Mixed US economic data could exacerbate downward pressure on the USDCAD pair.

Market profile analysis reveals prices trading below the value area, indicative of strong bearish sentiment. Bulls may re-enter the fray upon breaching the upper boundary of the value area, currently at 1.3590. Notably, market rebounded at 1.3432 during London's trading session, potentially solidifying this support level. However, a positive US economic release could bolster this support, while disappointing data may pave the way for further downside.

MACD and RSI oscillators echo the bearish sentiment, with RSI oversold for over 20 hours, suggesting potential for continued downward movement. 

In conclusion, the USDCAD pair faces significant event risk from impending economic releases, with bearish momentum prevailing pending key data outcomes. Traders should remain vigilant and adapt their strategies accordingly to navigate the evolving market landscape.


Key Takeaways

1. Traders are closely monitoring US Non-Farm Payrolls (NFP) and unemployment rates in the US and Canada.
2. Analysts predict a rise in Canada's unemployment rate and a decline in US NFP, with no change expected in the US unemployment rate.
3. Market sentiment remains subdued as investors await the release of key economic data.
4. Bollinger Bands indicate contracting volatility, with prices consistently trading near the lower band, signaling bearish sentiment.
5. Both EMA indicators point to growing bearish momentum, underscoring the potential for further downside in the USDCAD pair.

Key Economic Releases to Watch Today

USD,  Nonfarm Payrolls

Forecast 198K vs Previous 353K

USD, Unemployment Rate

Forecast 3.7% vs Previous 3.7%

CAD,  Unemployment Rate

Forecast 5.8% vs Previous 5.7%


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