Investors Expect Statistics on the Labor Market in the US

Since the beginning of this week, trades on majors are very active. Participants in financial markets are still concerned about the risks of a trade war between the US and China. It should be recalled that the PRC plans to introduce duties on 128 goods of American exports. Nevertheless, the key event will be the publication of the report on the US labor market for March on Friday, April 06 (15:30 GMT+3:00). These statistics may have a significant impact on the dynamics and the further alignment of forces on the main currency pairs.

The latest reports from the United States were ambiguous. In March, business activity in the manufacturing sector of the country fell by 2.5% to 59.3. Preliminary statistics on the labor market from ADP was quite optimistic. At the same time, the index of business activity in the non-manufacturing sector of the US fell by 1.8% to 58.8.

US Unemployment Rate
Source: tradingeconomics.com

Experts expect that in March the number of people employed in the non-farm sector of the US will slow down to 195,000. At the same time, the unemployment rate will drop by 0.1% to 4.0%. The growth of the average hourly wage will be 0.3% compared to the previous value of 0.1%. We recommend you to pay attention to the difference between the actual and the forecasted values of the figures.

The analysis of the CME exchange data (Chicago Mercantile Exchange) allowed to distinguish the option levels of major players' interest for March 09 – April 06:
  • The resistance zone – 1.2550-1.2650
  • The offer zone – 1.2100-1.2200
  • The option balance level – 1.2375
EUR/USD Pattern

At the moment the EUR/USD quotes are below the option balance level of 1.2375, which indicates the power of sellers. The MACD histogram also signals the bearish sentiment. Nevertheless, in the near future, we recommend opening positions from the key levels.

If the price fixes below the key support level of 1.22600, further correction of the EUR/USD currency pair is expected. The movement is tending to the monthly control zone of 1.2200-1.2100.

Alternative option. If the US labor market report turns out to be weak, the EUR/USD quotes may again test the option balance level of 1.2375.

When tracking positions, it’s better to use a trailing stop.

by JustForex, 2018.04.06

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
The Best Time to Trade USD/CAD
The US dollar and Canadian dollar form one of the most popular currency pairs. It represents a significant quota of daily trade. It's popular among both professionals and ultimate newbies.
Read more
Full Guide to Forex Trading in South Africa
Forex trading is a popular form of short-time investment and a source of additional or main income for many people all over the world. Forex trading is available in South Africa, but many potential traders just do not know how to make the first steps in this field. This full beginner’s guide explains the base of Forex and its key terms.
Read more
How to Learn Forex Trading for Beginners in 2022
We want to present a guide for beginner Forex traders that will give the main ideas on how to start Forex trading in the most effective way and how to earn on purchasing and selling currencies. Professional traders have designed the Forex trader tutorial whose extensive experience helped optimize its structure and content. It offers all the necessary information to start your trading journey in 2022.
Read more