Financial Market Participants Expect a Report on the US Labor Market

Since the beginning of this week, trading on major currency pairs is very active. At the same time, a unidirectional trend is not observed. The dollar index (#DX) is testing two-week highs. In the near future technical correction is not excluded. Demand for risky assets resumed against the backdrop of a possible truce between Washington and Beijing.

dx-finviz-2019-04-04.png
Source: finviz.com

At the moment, participants in financial markets took a wait-and-see attitude before publishing a report on the US labor market for March on Friday, April 5. These statistics can have a significant impact on the dynamics and further alignment of forces on majors.

Recent reports from the United States were rather weak. Preliminary data from ADP indicated an increase in the number of people employed in the non-agricultural sector of the country by 129K compared to market expectations of 184K. In March, the business activity index in the US non-manufacturing sector from ISM slowed down from 59.7 to 56.1. The consumer confidence index fell to 124.1, which was significantly lower than the forecasted value of 132.0.

us-nonfarm-2019-04-04
Source: tradingeconomics.com

Experts expect mixed data on the labor market: the number of people employed in the US non-farm sector will accelerate to 180,000; the growth of the average hourly wage will be 0.2% (m/m) in comparison to the previous value of 0.4% (m/m); the unemployment rate will remain at the same level of 3.8%. We recommend paying attention to the difference between the actual and forecasted values of the indicators.

Let's consider the current technical pattern on the EUR/USD currency pair.

  • Support levels: 1.12150, 1.11850, 1.11500
  • Resistance levels: 1.12500, 1.12850, 1.13250
  • marketnews-usdjpy-2019-03-19

    At the moment, the EUR/USD currency pair is consolidating after a significant fall since mid-March. The technical pattern is ambiguous. The trading tool is testing local support and resistance levels: 1.12150 and 1.12500, respectively. Indicators do not send accurate signals:

    • - the price is consolidating near 50 MA, which acts as a fairly strong dynamic resistance;
    • - the MACD histogram is near the 0 mark.

    We recommend opening positions from the key levels.

    If statistics from the US turn out to be positive, we expect a further fall in the EUR/USD quotes. The movement is tending to 1.11500-1.11250.

    An alternative could be the recovery of the EUR/USD currency pair to the round level of 1.13000.

    Confirmations and entry points to the market should be looked for on lower timeframes. When tracking positions, we recommend using a trailing stop.

    JustForex, 04.04.2019

    This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

    Open Account

Get Free Analytics

* required fields
Last Articles
All Articles
Monetary Policy Statement: What you need to know
Almost every month in the economic calendar, traders can see such events as the monetary policy meeting minutes. As a rule, during the publication of this protocol, the volatility increases sharply. Let's find out what this protocol is and whether it is possible to make money on it.
Read more
Forex Trade in Nigeria: Choosing the Right Timing for Successful Trading
The Nigerian economy is strong and blossoming, so it provides plenty of opportunities for earning, investing, and making more money. Forex trading is one of the ways to multiply your savings, but there are many factors that impact the outcome of your trading. Along with choosing the right currency pair, you need to carefully calculate when to trade (and when not to trade). This article will help you keep track of the best trading periods by the Nigerian time and how to decide when to enter the trades and when to refrain from them.
Read more