EUR/USD: Market turns indecisive ahead of US Nonfarm Payrolls


  • EUR/USD's daily chart shows signs of indecision in the market place. 
  • October US Nonfarm Payrolls are expected to fall on General Motors strike.
  • A below-forecast US wage growth could yield an inverse head-and-shoulders breakout in EUR/USD.

The EUR/USD market seems to have turned indecisive ahead of the all-important US Nonfarm Payrolls report, which is expected to show the job growth slowed in October.

Doji candle

The common currency on Thursday witnessed two-way business, but ended on a flat note, forming a Doji candle on the daily chart. That candlestick pattern represents indecision in the market place.

Also, the pair has formed an inverse head-and-shoulders pattern on the daily chart with the neckline resistance at 1.1184.

Focus on Payrolls

The data due at 12:30 GMT is expected to show the economy added 84,000 jobs in October, having added 136,000 jobs in September. The unemployment rate is expected to rise by 0.1% to 3.6%.

Average hourly earnings are forecasted to climb 0.3% on the month and 3.0% on the year after no monthly gain in September and a 2.9% annual increase. The labor force participation rate and the average weekly hours are expected to remain at 63.2% and 34.4%, respectively.

Note that, October payrolls are expected to fall on General Motors strike. The decline in the jobs, therefore, will likely be viewed as a temporary development and may not hurt the US Dollar.

The greenback, however, will likely face strong selling pressure, helping EUR/USD scale resistance at 1.1184 in a convincing manner if the wage growth figure prints well below estimates. A big drop in earnings will likely put pressure on the Fed to go for another rate cut in December or January.

A close above 1.1184 would confirm an inverse head-and-shoulders breakdown and open the doors for 1.1489 (target as per the measured move method).

EUR/USD could drop below key support at 1.1131 if the US wage growth numbers blow past expectations. At press time, the pair is trading at 1.1166, representing a 0.11% gain on the day. 

Technical levels

EUR/USD

Overview
Today last price 1.1166
Today Daily Change 0.0012
Today Daily Change % 0.11
Today daily open 1.1154
 
Trends
Daily SMA20 1.1074
Daily SMA50 1.104
Daily SMA100 1.1125
Daily SMA200 1.1199
 
Levels
Previous Daily High 1.1176
Previous Daily Low 1.1132
Previous Weekly High 1.1063
Previous Weekly Low 1.0941
Previous Monthly High 1.118
Previous Monthly Low 1.0879
Daily Fibonacci 38.2% 1.1159
Daily Fibonacci 61.8% 1.1148
Daily Pivot Point S1 1.1131
Daily Pivot Point S2 1.1109
Daily Pivot Point S3 1.1087
Daily Pivot Point R1 1.1176
Daily Pivot Point R2 1.1198
Daily Pivot Point R3 1.122

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures