Dollar index has regained ground recently and it's strength seems unstoppable at the moment. Todays' NFPs could put a halt to USD growth. Only a major disappointment with employment figures will give a lift to EUR, GBP and their allies. EUR sits at a major support at 1.1925. A break of this level will give a way to 1.17 while rebound cound reach 1.205.
iggy_ua's Blog
USD reversal
EURUSD is drawing head and shoulders on 4h chart. enter short from current level with sl over 1.23. A break of 1.22 is needed to validate the set up which will produce a decline to 1.2.
Post NFP
with a strong reversal of the US gains yesterday in the American trading session it's fair to expect continuation of the move today. however, today's NFPs could change the currencies direction. EUR has reached a strong resistance at 1.2 and GBP is weak all together. I would expect continuation of EUR correction to the downside and GBP to continue the slide against USD. EURUSD target is 1.175 and GBPUSD 1.28
FOMC statement
In anticipation of the FOMC statement GBP has staged a recovery from the double bottom. The technical picture suggests that the GBPUSD pair can jump to the upper line of the channel to around 1.28 mark. The short-term downsize is limited at 1.245 in case of risk aversion after FOMC
Currency wars
The next week is expected to be volatile for EUR. The Italian referendum and ECB rate decision are key drivers for the currency direction. Last week USD finished at 13year highs with EUR as week as others against USD. Most likely scenario is a contiuation of EUR sell-off and testing of 1.0 level against USD. Intermediate support sits at 1.046. Trading in EUR provides more risk than reward and it's suggested to stay away from the pair or take small positions aftr volatility settles. The direction…
USD NFP GDP
Nov NFPs came out in a mixed bag. Despite job growth appeared an inch below expectations, the unemployment rate fell to the lowest rate since 2008 at 2.5% against 2.8% expected. However, the wages growth and the participation rates were depressed. Considering the dubious figures, an impact on the market is neutral. We should settle in a range currency market today.
On Monday GBP UK Supreme Court hears Government-Parliament Brexit appeal. In anticipation of this risky event the market might sell …
On Monday GBP UK Supreme Court hears Government-Parliament Brexit appeal. In anticipation of this risky event the market might sell …
USD post NFP
Non-farm payrolls came out below expectations but still showed a jobs growth in the recent month. Despite this slowdown the unemployment rate edged down to 4.9%. The other important data like average earnings also came in ahead of expectations at 0.5%. The report was not taken by the market with caution. I expect that the next week currency moves will continue the previous week's sideway consolidation. With the absence of any important announcements until wednesday, the currencies will move in s…