US stocks forecast: Bulls in the driving seat ahead of key Nonfarm Payrolls

The Dow Jones Industrial Average added 0.23%.
The S&P 500 put on 0.16% and the Nasdaq Composite advanced 0.07%.

Ross J Burland FXStreet

US stocks were firm on the day before the critical Nonfarm Payrolls event on Friday on the back of positive news in the Jobless Claims data.

The data has proven the labour market remains in good stead despite the rising COVID-19 infections.

However, investors are still expecting a sub-par outcome in tomorrow's NFP data which probably means that the Fed will not be in a hurry to taper the quantitative easing programme.

Consequently, the S&P 500 and Nasdaq also set new intraday highs.

The Dow Jones Industrial Average added 0.23%, the S&P 500 put on 0.16% and the Nasdaq Composite advanced 0.07%.

Widerspread, the MSCI's world stock index that measures equity performance in 50 countries, added 0.19% after paring earlier gains and was still on track to post its fifth consecutive closing high.

Friday's much anticipated August employment report has expectations for a call for 750k headline job growth, an Unemployment Rate of 5.2%.

Dow daily chart

The bulls are in anticipation of a 21-50 day EMA bullish crossover:

The index hs painted a bullish dandle stick at the close with the confluence of trendline support not far behind at the 61.8% Fibonacci level.

A 21-EMA crossover up through the 50 EMA could be regarded as a highly bullish development for the day's and weeks ahead.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.