Free Trade Ideas

***Updated Key Levels from yesterday’s misprint!
Welcome to Mid-Week Trade! It was a big Wednesday in the markets, headlined by the latest US Non-Farm Payrolls (NFP) report. January’s NFP didn’t disappoint. A huge topside beat was the story of the day, all but taking a pre-June Fed rate cut off the table. Let’s dive into the day that was on Wall Street!
During the pre-NYC cash open, the US Bureau of Labour Statistics (BLS) released the first NFP of 2026. New jobs totalled 130,000, severely outperforming expectations (66,000) and the previous figure (48,000). Unemployment fell from 4.4% to 4.3%, signalling a slight improvement in the broader labour market. A positive number? Indeed — but not good enough to keep the DJIA from snapping a three-day win streak.
A higher-than-expected NFP report is typically viewed as bullish for the USD. This was not the case today as the USD Index (DXY) closed near flat after a full session of trade. If weakness persists in the Greenback, many long-term support or resistance levels will come into play for the FX majors. Here’s one such zone in the USD/CAD:
Monthly Demand Zone, 1.3400 - 1.3425
As you can see on the USDCAD monthly chart, a defined Swing Low setup occurred in this area back in September of 2024. If tested again, the 1.2400 demand zone has a great chance of being downside support yet again. Check out our Key Levels for more information on this Trade Idea.
At press time, the CME FedWatch Index is assigning a 94% chance of the Fed holding interest rates firm at their March meeting. We’ll cover these expectations and more at Thursday’s US session live stream (1:00 PM EST, Switch Markets on YouTube). That’s all for now; trade well, and we’ll catch you Thursday!