Canadian Employment Report Giving Us Another Winning Signal - Forex News by FX Leaders

Canadian Employment Report Giving Us Another Winning Signal

Posted Friday, February 10, 2017 by
Skerdian Meta • 1 min read

A couple of hours ago we opened a sell forex signal in USD/CAD. The reason for this was purely technical.

This forex pair was oversold on the hourly chart as the stochastic indicator suggested at that time. Besides that, if we switch to the H4 forex chart we can see that the previous candlestick closed as a doji, which signals a trend reversal soon.

The trend reversal happened eventually, but the main factor for that was the impressive Canadian employment report. New employment jumped by more than 45k while it was expected to decline by 10k.

The Canadian unemployment rate also beat the expectations when it showed a 0.1% decline from the previous month. At 6.8%, the unemployment rate in Canada is higher than its peers in other developed nations, but it´s slowly getting to the natural unemployment level.

The H4 chart wasn´t overbought yet, but the doji was enough to persuade us to sell

So, that round of data was published and CAD pairs immediately lost 80-100 pips. Our USD/CAD signal reached the take profit target, so it´s been three winning forex signals for us today.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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