Tag Archives: trending market

U.S. Employment Plunges Much More Than Expected In March

Employment in the U.S. fell much more than expected in the month of March, according to a report released by the Labor Department on Friday. The report said employment plunged by 701,000 jobs in March after jumping by an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. With the much bigger than expected drop in employment, the unemployment rate surged up to 4.4 percent in March from 3.5 percent in February. The unemployment rate had been expected to climb to 3.8 percent. The material has been provided by InstaForex Company – www.instaforex.com…

Spain Industrial Production Decline Slows In February

Spain’s industrial production fell at a softer pace in February, data from the statistical office INE showed on Friday. Industrial production declined a calendar adjusted 1.3 percent annually in February, following a 2.2 percent fall in January. Energy output had the biggest decline of 4.1 percent annually in February and non-durable consumer goods decreased 1.2 percent. Meanwhile, durable consumer goods remained unchanged. On an unadjusted basis, industrial output rose 0.1 percent in February, after a 3.8 percent decline in the preceding month. On a month-on-month basis, industrial production remained unchanged in February. The material has been provided by InstaForex Company – www.instaforex.com…

GBP/USD: plan for the US session on April 3. Bears are counting on a major flight of the pound down. The support of 1.2315

To open long positions on GBPUSD, you need:Bears managed to gain a foothold below the support of 1.2315 in the first half of the day after very poor data on activity in the UK services sector. This is clearly visible on the 5-minute chart. However, the continuation of the downward trend in the pound will depend on data on the state of the US labor market. In the second half of the day, the bulls urgently need to return a pair back to the level of 1.2315, since only in this scenario will it be possible to maintain the advantage. If the decline continues in GBP / USD, it is best to return to long positions only after the support test of 1.2150 or to rebound from the larger minimum of 1.1985, in the expectation of correction of 60-70 within the day. A breakout and consolidation above 1.2315 will push purchases to the maximum area of 1.2473, where I recommend fixing the profits.To open short positions on GBPUSD, you need:The bears coped with the weekly task and broke below the support of 1.2315 from the 5th time. Sellers of the pound in the second half of the day need to achieve…

EUR/USD: plan for the US session on April 3. Bears continue to control the market and follow the set course to the lows of

To open long positions on EURUSD, you need:
Another sale of the European currency after the publication of business activity indices for the services sector of the eurozone led the pair to the support of 1.0790. I paid attention to this in the morning forecast. The 5-minute chart clearly shows how the bulls try to form a false breakout, successfully making several bounces from this level, but each time they meet with larger sales. At the moment, the further movement of the euro down depends on the analysis of data on the labor market. It is unlikely that the bulls should expect the support of 1.0790, so it is best to return to long positions after updating the minimum of 1.0718, provided that a false breakout is formed there, or immediately to rebound from the annual support of 1.0626. In the scenario of the pair’s growth in the second half of the day after the data on the state of the US economy, the bulls will try to regain the resistance of 1.0880, which will push EUR/USD even higher, to the maximum of 1.0955, where I recommend fixing the profits.

To open short positions on EURUSD, you need:
Sellers continue to follow a clearly…

Will the dollar stop plan B?

All attempts by the Fed to rein in the US dollar were futile. Neither a sharp reduction in the federal funds rate, nor the launch of unlimited purchases of Treasury and mortgage bonds under QE, nor the transfer of liquidity to foreign central banks using swaps and repos has dampened investors’ interest in buying the USD index. If this continues, I am afraid that currency interventions will be necessary. According to BofA Merrill Lynch, this will happen when the EUR/USD pair falls to 1.05.
In theory, this scale of dollar liquidity and the rapid expansion of the Fed’s balance sheet should have knocked the “American” down. Nevertheless, the number of supporters of the “dollar smile” theory is growing rapidly. It assumes that at the first stage, the USD index is strengthened due to the strength of the US economy and the associated inflow of capital to the US securities market. When a recession begins, the dollar peaks as investors flee to safe-haven assets. Then, thanks to those who want to save stock indices from falling into the abyss with the help of aggressive monetary expansion, the Fed forms the bottom of the smile. After that, the dollar begins to grow again, as…

Analysis of EUR/USD on April 3, 2020

Waiting for Nonfarm Payrolls
Hello, dear colleagues!
The main event of today and the whole week will be data on the US labor market, which will be published at 13:30 London time. Economists’ forecasts are disappointing. It is expected that the unemployment rate will rise from 3.5% immediately to 3.8%, and the growth of the average hourly wage will be the usual 0.2%. As for the creation of new jobs in non-agricultural sectors of the American economy, this indicator may fall to minus 100 for the first time since the financial and economic crisis of 2008.
In principle, market participants are well aware that in the context of the ongoing rampant COVID-19 around the world, strong data on the US labor market can not be expected. Interest is aroused by the actual figures and the reaction of investors to them. Has the coronavirus epidemic had such a significant impact on the economy of the United States of America, or will it be a little later? There will certainly be negative consequences for the world’s leading economy. The question is when exactly to expect a peak?
So far, it is in the United States that the most severe outbreak of a new type of coronavirus is…

Analysis of AUD/USD on April 3, 2020

Hello, dear traders!
It’s time to consider the AUD/USD currency pair, the technical picture of which is quite interesting. But more on that later.
The Reserve Bank of Australia (RBA), along with other leading global central banks, announced the introduction of temporary swaps in the US currency in order to increase liquidity. In addition, the RBA together with the Australian government decided to allocate about 100 billion Australian dollars to support the Australian economy.
Let’s look at the technical picture for the AUD/USD currency pair, and since this tool is analyzed once a week, let’s start with the corresponding timeframe.
Weekly

After falling to the level of 0.5510, the pair began to adjust from the previous fairly strong and prolonged decline. Attempts to continue to recover losses in the current five-day trading failed at the level of 0.6215, from where the pair again turned in the south direction.
In fairness, it should be noted that the results of weekly trading will be determined by data on the US labor market, which will be published at 13:30 (London time). Economists’ forecasts are very pessimistic, and if the actual numbers turn out to be even worse than expected, the US currency risks falling under a wave of sales.
The current…

Instaforex Daily Analysis – 3rd April 2020

Today we take a look at Gold and see how we are going to play the bounce!We use Fibonacci retracements, extensions, support/resistance, momentum and trend lines to identify trading opportunities in this exciting pair today!The material has been provided by InstaForex Company – www.instaforex.com…