Investors Expect the US Labor Market Data

During recent sessions, the greenback has shown a variety of trends against its main competitors. The dollar index (#DX) is in a sideways trend (97.10-97.70). Investors are still concerned about the rapid increase in the number of infected with COVID-19, which may cause even greater damage to the global economy. Currently, the total number of infected has reached 10.5 million. Representatives of key central banks have announced their intention to take even more steps to maintain economic activity. At the same time, recent economic releases indicate a gradual recovery of the global economy. Major stock indices have recovered most of the losses.

dx-2020-07-01
Source: finviz.com

At the moment, financial market participants have taken a wait-and-see attitude before the publication of the US labor market report for June, Thursday, July 2. These statistics may have a significant impact on the dynamics of currency majors.

Recent reports from the US were ambiguous. Preliminary data from ADP indicated an increase in the number of people employed in the nonfarm sector of the country by 2.369K, which is lower than the forecasted value at the level of 3.000K. The consumer confidence index rose to 98.1 compared to market expectations of 91.8. ISM manufacturing PMI accelerated to 52.6 from 43.1.

non-farm-2020-07-01
Source: tradingeconomics.com

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

  • Support levels: 1.1170, 1.1070, 1.0995
  • Resistance levels: 1.1285, 1.1345, 1.1415
  • mn-2020-07-01

    Currently, the EUR/USD currency pair is consolidating. There is no defined trend. At the moment, the key support and resistance levels are: 1.1170 and 1.1285, respectively. Indicators do not give accurate signals:

    • - The price has fixed between 50 MA and 100 MA;
    • - The MACD histogram has started declining.

    We recommend opening positions from key levels.

    If the price fixes below the support level of 1.1170, we expect a drop in EUR/USD quotes. The movement is tending to 1.1100-1.1050.

    An alternative could be the growth of the EUR/USD currency pair to 1.1345-1.1400.

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

    by JustForex, 2020.07.02

    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.

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