Simon Alagbe maps supply and demand zones on USD/CAD and proposes two pending-order trades around 1.3960 ahead of Canadian employment and U.S. non-farm payroll data on May 8, 2020. The pandemic is expected to spike unemployment sharply, creating volatility to trade.
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Good day, you are welcome to Rally Academy's daily market analysis. My name is Alagbe Simon, a market analyst with Rally Academy. Today, the 8th of May, year 2020, we will be looking out for trading opportunity on USD/CAD. So let's take a look at the MT4. This is a more prominent supply zone on the daily charts. And, um, here, according to this indicator, is showing to us that it's a verified resistance. So it's a very strong supply zone. This is a weaker supply zone, and every single time USD/CAD gets to this supply zone, we see a lot of sellers rushing to the market to push the market down. And currently USD/CAD is edging closer to the demand zone on the daily chart. And, uh, based on what has been happening previously, every single time USD/CAD gets to this demand zone, we've always seen it push higher from that point. This was the first instance, the second instance, and this time around too. Is approaching that same demand zone. So on the long run now, we should be looking out for opportunity to, uh, buy the retracement of this demand zone. Although for today, there might still be some room for us to make money up to the demand zone in view. Let's check the instrument on the 4-hour chart. Okay, so this is, um, USD/CAD on the 4-hour chart. We have the supply zone and then we have another demand zone somewhere around this region. So there is a demand zone somewhere around this region, and we can see that it's currently pushing up around that demand zone. Let's also check it clearly on the hourly chart. Okay, so it's currently around the demand zone also on the hourly chart. So there is room for us to make money depending on the breakouts around this zone that has been marked out. If USD/CAD is able to push higher than this point, then we can have a buy trade up to this resistance in view. And then if there is a break below this marked out zone, then we can also have a sell trade up to this support. So we have 2 opportunities right from where USD/CAD is at this moment. A break above, then we target a few moments away from the resistance, or a break to the downside, and we have our target before this support. So let's quickly mark out, um, our entry points for the pending buy trades and then the pending sell trades on this instrument. So we can have a buy somewhere around this price level with our TP somewhere around this price level, with a sell also from this price level and our TP also around this price level. So how do we go about, um, having pending trades to take advantage of these 2 proposed moves? We go to a new order, change this from instant execution to pending order. And because we are looking out for USD/CAD pushing out of this zone, getting air, and then retesting this resistance we have Um, the buy stop at price level, this price here, 1.39603. And then we have our take profit at 1.39997. And our stop loss will be the entry point of the pending sell trade, which is 1.39— 39603. 1.39177. So place this, and then we go for the other side, which is the pending sell trade. New order, change this to pending order. Then we have a sell stop at price level 1.39177, and then our take profit is at 1.38 1.3752, and our stop loss is the entry point for the pending buy trade, which is 1.39603. We place this too. So let's quickly check on the fundamental fronts, um, if there's any major economic data that will impact movement on this instrument. Today. So this is forexfactory.com, and then on this site would be able to see some very important economic data that will be coming out from the 2 countries today by 1:30 PM today. It's a very crucial time on this instrument today. From Canada, we're expecting 2 job data and employment change, and then unemployment rate. From the forecast, economists are expecting unemployment rate in Canada to have jumped to 18% from the previous of 7.8%. That means about 11% of people who were previously employed in Canada is expected to have lost their job. And should have been added when the actual finally comes out. And then on this employment change, instead of people, um, being employed, they're expecting a loss of job to the tune of about 4 million individuals. While from the US, we're expecting average hourly earnings, um, non-farm employment change, which is expected to come out at about 22 million. Negative 22 million. What used to be very positive because people ought to be employed, but by virtue of, um, the presence of the novel virus, a lot of people have been losing jobs. And that is why the job data expected today is looking bleak across board. And then unemployment rate also used to be about 4.4%. this time around it is expected to have leaped to about 16%. So it's a lot of interesting data by 1:30 PM, and a lot of movement will also be expected on USD/CAD at this time. It's job data all the way by 1:30, and a lot of movement also on USD/CAD. So let's utilize this opportunity and let's make some money off USD/CAD today. Thank you.
