By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
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.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
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 furth
Disclaimer
Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
- Indices decline amid hawkish comments from the Fed. Investors are waiting for Israel’s answer Apr 17, 2024
- EURGBP: Slams into support on hot UK inflation Apr 17, 2024
- Brent crude prices dip amid concerns over global demand Apr 17, 2024
- Stock indices sell-off amid rising geopolitical tensions in the Middle East. China’s GDP grew the most in a year Apr 16, 2024
- New FXTM commodity hits all-time high! Apr 16, 2024
- NZD hits five-month low against strong US dollar Apr 16, 2024
- Escalating conflict in the Middle East is forcing investors to shift funds to safe assets Apr 15, 2024
- US dollar exhibits remarkable strength amid global tensions Apr 15, 2024
- COT Metals Charts: Speculator bets led higher by Copper & Platinum Apr 13, 2024
- COT Bonds Charts: Speculator Bets led by 10-Year & 5-Year Bonds Apr 13, 2024