EUR/USD is back to falling on Monday; it is currently trading at 1.1280.
Last Friday’s statistics on the US labour market for November were rather mixed. However, the ISM and PMI data may help the market to recapture the positive tendency.
The Unemployment Rate in the US dropped from 4.6% in October to 4.2% in November. At the same time, the Average Hourly Earnings added only 0.3% m/m, less than expected. The Non-Farm Employment Change was really disappointing and showed 210K after being 546K the month before and against the expected reading of 553K.
The numbers are very mixed: the labour market may have slowed down the job creation process, but only the December data will show whether it is accidental or regular.
These mixed signals from the labour market are quite unlikely to prevent the US Fed from deciding in favour of a more active QE program closure during its meeting scheduled for 15 December.
In the H4 chart, EUR/USD is trading downwards to reach 1.1247 and may later consolidate there. If later the price breaks the range to the downside, the market may resume falling towards 1.1116. After that, the instrument may start a new correction to return to 1.1247 and then resume falling with the target at 1.1110. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving to break 0 and may later continue falling towards new lows.
As we can see in the H1 chart, EUR/USD is forming the third descending wave; it has already completed the first wave at 1.1266 along with the correction towards 1.1326. At the moment, the asset is falling to reach 1.1250 and may later form a new consolidation range as a downside continuation pattern. If the price breaks the range to the downside, the market may resume falling with the short-term target at 1.1140 and then form one more descending structure to reach 1.1111. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line is moving below 20, thus implying a further downtrend.
Before you enter foreign exchange and stock markets, you have to remember that trading currencies and other investment products is trading in nature and always involves a considerable risk. As a result of various financial fluctuations, you may not only significantly increase your capital, but also lose it completely. Therefore, our clients have to assure RoboForex that they understand all the possible consequences of such risks, they know all the specifics, rules and regulations governing the use of investment products, including corporate events, resulting in the change of underlying assets. Client understands that there are special risks and features that affect prices, exchange rates and investment products.
Recommended Content
Editors’ Picks
EUR/USD climbs to fresh daily highs near 1.0750
EUR/USD has regained its traction and climbed to a daily high near 1.0750. Despite the upbeat ADP employment data, the downward revision to Unit Labor Costs for Q1 and the sharp drop seen in ISM Manufacturing PMI's Prices Paid Index weighed heavily on USD, boosting the pair.
GBP/USD rises to multi-week highs above 1.2500
GBP/USD has extended its daily rally and touched its highest level since mid-May above 1.2500. The US Dollar continues to weaken against its rivals as soft wage inflation data feed into expectations for a pause in Federal Reserve rate hikes at the upcoming policy meeting.
Gold climbs above $1,980 as US yields extend slide
Gold price climbed above $1,980 in the American session on Thursday. Following soft manufacturing and wage inflation data from the US, the benchmark 10-year US Treasury bond yield is down more than 1% on the day near 3.6%, fuelling XAU/USD's daily rally.
XRP unlocks tokens worth $500 million as SEC vs. Ripple verdict looms
Ripple, the cross-border payment remittance giant, has unlocked a total of 1 billion XRP tokens from escrow on Thursday. This unlock is a part of the scheduled monthly distribution strategy of the XRP token.
LCID sheds 13% with $3 billion share sale
Lucid Group (LCID), the maker of the Lucid Air luxury electric sedan, surprised shareholders late Wednesday when it announced that it would raise $3 billion in new common stock.