Post NFP review and USD long exits chart setups

Last Friday’s U.S. Non-Farm Payroll release continued with strong employment figures at 255,000 with biggest job growth in business services, healthcare, and financial activities with a decline in mining.

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US Non-Farm Payrolls

Despite slightly lower than June’s figures, it still presents significant optimism in the U.S. economic growth given a few key events that occurred over the past week.

The Bank of Japan defied market expectations and announced they would keep bond purchases consistent with mentions of re-evaluating its policies in September.

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USDJPY 1-Hour

Along with stronger U.S. payroll figures, USDJPY picked up near market close and is expected to continue to rally for the weeks ahead as traders anticipate what policy changes September brings.

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USDCAD 1-Hour

Along with stronger U.S. payroll figures, the Canadian employment change and trade balance both disappointed causing the USDCAD pair to surge. Last week, I posted about shorting at the 1.318~ price level. However, price never reached that zone and reacted much sooner than anticipated.

For the week ahead, I consider looking to short into this pair off of this level. Last week’s close was already an indication of very modest long exits. As traders are anticipating another rate hike, there is more of a reason to short as the Fed’s, unsurprisingly, will probably continue to cite global economic slowdowns concerns in September.

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