We are expecting NFP data today at 12:30 GMT time. ADP this time, printed out better the expected result and we might expect that NFP prints higher. If there is a strong deviation from consensus numbers (202K) it will have a positive effect on the market as the odds of December rate hike are app 45 %. Good NFP numbers will raise the chance slightly above 50 %. General trend on EURUSD is bearish as ECB QE will probably be extended and technical are aligned with fundamentals.
We need to pay attention to 1.1105 and 1.1210. If the pair drops below 1.1105 it should reach 1.1070 initially and may well proceed towards 1.0980. If the pair pushes above 1.1210 , 1.1325 could be the target and we could use it as another sell into rally.
Have in mind that NFP spike WILL not reach these levels immediately so we need to pay attention to H4 close/H1 momentum to see the direction AFTER NFP spike has faded. Any good rally will be possibly used for fresh selling. Breakout trades are possible but only as SPIKE trades, if levels are breached.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
Recommended Content
Editors’ Picks
AUD/USD: Gains appear capped near 0.6580
AUD/USD made a sharp U-turn on Tuesday, reversing six consecutive sessions of gains and tumbling to multi-day lows near 0.6480 on the back of the robust bounce in the Greenback.
EUR/USD tumbles out of recent range, tests below 1.0770 as markets flee into safe havens
EUR/USD slid below the 1.0670 level on Tuesday after an unexpected uptick in US wages growth reignited fears of sticky inflation, chopping down rate cut expectations and sending investors into safe haven bids.
Gold pullbacks on rising US yields, buoyant US Dollar as inflation heats up
Gold prices drop below the $2,300 threshold on Tuesday as data from the United States show that employment costs are rising, thus putting upward pressure on inflation. XAU/USD trades at $2,296 amid rising US Treasury bond yields and a stronger US Dollar.
Ethereum slumps again as long liquidations exceed those of Bitcoin
Ethereum experienced a further decline on Tuesday following a disappointing first-day trading volume for Hong Kong's spot Bitcoin and ETH ETFs. This comes off the back of increased long liquidations and mixed whale activity surrounding the top altcoin.
No tap dancing around inflation concerns
Tuesday saw U.S. stocks closing considerably lower as investors grappled with economic indicators indicating increasing labour costs and a decline in consumer confidence, all coming ahead of a crucial Fed policy meeting aimed at determining the trajectory of interest rates.