3 July, 2015
On Thursday, the Euro grew by 30 points against the USD amid poor economic data from the US. Non-farm Payrolls amounted to 223 K of new jobs, which is 7 K below what was expected. The unemployment level fell by 0.2% to 5.3%, however, labor participation rate was only 62.2%, which is the worst figure since 1977.
It is an official holiday in the US today. Major economic releases for today include Markit Services PMI for France (at 10:50 am GMT +3), Germany (at 10:55 am GMT +3) and Eurozone (at 11:00 am GMT +3), as well as the Retail Sales data for Eurozone (at 12:00 pm GMT +3). Markets expect positive data and that should strengthen the Euro. The pair remains moderately volatile.
Support and resistance
On the 4-hour chart, MA20 and MA50 remain above the current price and directed downward, which indicates downward trend.
The support level is at 1.0954 (this week low). The nearest resistance level is at 1.1117 (EMA20).
Support levels: 1.0954.
Resistance levels: 1.1117, 1.1157, 1.1235.
Open short positions from 1.1050 with the target at 1.0950 and stop-loss at 1.1100.
Long positons can be opened after the price consolidation above 1.1117 with the target at 1.1157 and stop-loss at 1.1100.
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...
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