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CADJPY - Approaching A Strong Supply 🔎Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. CADJPY has been overall bullish trading inside the rising channel in orange, however it is currently approaching around the upper trendline. Moreover, the zone 109.0 is a strong supply. 🏹 So the highlighted red circle is a strong area to look for sell setups as it is the intersection of the green supply and upper orange trendline acting as a non-horizontal resistance. As per my trading style: As CADJPY approaches the orange circle zone, I will be looking for bearish reversal setups (like a double top pattern, trendline break , and so on...) 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
usdcad trade idea I bias down sideThe Canadian dollar has managed to maintain strength against the USD in a week with little Canadian specific economic data. Last week’s Bank of Canada (BoC) rate announcement saw Governor Macklem leave the door open to additional hikes should incoming data necessitate. Subsequently, the local balance of trade and labor reports outlined the economies resilience and sustained upside pressures on inflation from an average earnings lens. Higher crude oil prices are also favorable for the CAD while supplementing the inflation narrative that could prompt the aforementioned hike early next year. This is reflected in BoC interest rate expectations (refer to table below) which have been ‘hawkishly’ re-priced to suggest a 10bps peak from 5bps just last week. BANK OF CANADA INTEREST RATE PROBABILITIES
Short
by Ttrade-With-Logic
2
CADJPY – holding for 109.50 While NOK (Norwegian krone) has the strongest statistical relationship with Brent and WTI crude, we can see a strengthening correlation between crude and the CAD. We see the 1-month correlation between crude and CADJPY at 0.68, so it's meaningful. We also see (on the daily) price breaking out of the top of its recent range of 108.50. While many will be concerned with being short JPY, given BoJ intervention risk, for now, traders remain happy to fade JPY strength as carry is still attractive (given the low volatility). Also, with crude on the rise the market sees this benefiting Canada’s terms of trade, while it negatively impacts Japan’s economics given, they are a big importer of energy. The bulls happy to hold for 109.50, stops on a daily close below the 5-Day EMA.
Long
by Pepperstone
USD/CAD Slips as Canadian Labor Market Surges: Impact on Forex..USD/CAD Slips as Canadian Labor Market Surges: Impact on Forex and Global Markets Introduction The USD/CAD currency pair experienced a significant decline, nearing the 1.3600 mark, following the release of robust labor market data by Statistics Canada. This unexpected surge in Canadian employment figures has sent shockwaves through the forex market and has implications for global investors. In this article, we will delve into the details of this development and explore the broader economic landscape that surrounds it. Canadian Labor Market Surprises Statistics Canada's latest report revealed that the Canadian labor market witnessed an impressive increase of 39.9K payrolls in August, surpassing expectations, which were set at a more modest 15K. This remarkable uptick follows a retrenchment of 6.4K in July, showcasing the resilience of the Canadian economy. Moreover, the unemployment rate held steady at 5.5%, defying forecasts that anticipated a slightly higher jobless rate of 5.6%. One noteworthy aspect of this report is the increase in the Annual Average Hourly Wages, which rose to 5.2%, exceeding the previous release of 5.0%. Such robust wage growth has the potential to boost consumer spending and maintain inflationary pressures, potentially prompting the Bank of Canada (BoC) to consider raising interest rates. This move would come after a pause in rate hikes during the past two policy meetings, signaling a potential shift in monetary policy. Global Market Impact As the USD/CAD pair faced intense selling pressure due to the strong Canadian labor market data, other global markets exhibited mixed sentiments. The S&P500 was expected to open with a relatively flat performance, reflecting mixed cues from overnight futures. This indecisiveness is mirrored in the strength of the US Dollar Index (DXY), which remains well-supported near the 105.00 resistance level. Investors find themselves caught between global uncertainty and the possibility of a Federal Reserve (Fed) policy adjustment during the September meeting. The Strength of the US Dollar The strength of the US Dollar is a critical factor in the ongoing forex dynamics. The United States' economy continues to demonstrate resilience, primarily attributed to cooling inflation and stable labor growth. Chicago Fed Bank President Austan Goolsbee articulated the central bank's goal of achieving a "golden path," characterized by a reduction in inflation without triggering a recession. This stance contributes to the US Dollar's firm footing in the global currency market. Furthermore, the US job market is displaying signs of strength, with jobless claims consistently falling below expectations for the third consecutive week. The latest report from the US Department of Labor indicated that first-time jobless benefit claims dropped to 216K for the week ending September 1, surpassing expectations, which were set at 234K and below the previous figure of 229K. Conclusion The unexpected surge in Canadian labor market data has sent ripples across the forex market and impacted global investor sentiment. As the USD/CAD pair faces downward pressure, other markets remain cautiously optimistic, reflecting the ongoing uncertainty in the global economic landscape. The strength of the US Dollar, supported by resilient economic indicators, continues to play a pivotal role in shaping forex dynamics. Additionally, the US job market's consistent improvement contributes to the overall stability of the United States' economy. As investors navigate this complex terrain, they must remain vigilant and adaptable in response to evolving economic developments.
Long
by FOREXN1
16