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Feeling dollar bearish this week?

Here’s a simple trend pullback setup on USD/CAD you might wanna start off with.

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week . Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions :

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar :

  • U.S. ISM manufacturing PMI at 2:00 pm GMT

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: USD/CAD

USD/CAD 1-hour Forex Chart

It’s NFP week y’all!

This means that leading U.S. jobs indicators would likely get a lot of market attention, and we’ve got the ISM manufacturing PMI lined up today.

Analysts are expecting to see a small improvement from 60.6 to 60.8, reflecting a faster pace of expansion. However, a lower than expected result or a dip in the jobs component might still lead to a drop for the Greenback.

If that’s the case, USD/CAD might be able to resume its slide after this quick correction.

You see, the pair fell through short-term support at 1.2535 and seems to be making a pullback to this area. This lines up with the 61.8% Fib level and a falling trend line connecting the highs on its 1-hour time frame.

If resistance holds, the pair could slump back to the lows at 1.2420 or lower. A break past the area of interest, on the other hand, could signal that a reversal from the drop is due.

Is USD/CAD a buy or a sell?

Factors that could dull the Loonie’s shine include the slide in crude oil prices, as the OPEC+ is set to increase production by 400K barrels per day starting this month.

Apart from that, risk-off flows appear to be in play during the earlier trading sessions when China printed a lower than expected manufacturing PMI.