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
Stop and Limit Orders in Forex
There are many gainful opportunities for traders in the forex market, but no one is immune to losses. That’s the reason why traders should employ an efficient trading strategy where both stop and limit orders go hand in hand with other essential aspects of the strategy.
Read more
Top 10 Successful Forex Traders in Indonesia
Due to the growing popularity of forex trading, it’s impossible to stay on the sidelines. What does it take to become one of those confident traders? Is forex trading for you? Find out more about the nature of this industry and have a look at the list of top Indonesian forex traders in 2021.
Read more
Guide to Forex Trading in Indonesia
What is forex trading? It’s freedom – due to the round-the-clock market operation in different parts of the world, hundreds of thousands of traders choose what’s best for them: time frame, asset, strategy, objectives, amount of a deposit, etc. There might be a lot of questions in the beginning of your trading journey, and this article aims to emphasize the essential aspects of this profession.
Read more