10 January 2020

US Non-Farm Payrolls: Friday, 13:30. November’s jobs reports was a blockbuster – no fewer than 266,000 jobs were gained in the world’s largest economy. Alongside upward revisions to previous months and a healthy yearly wage increase of 3.1%, the dollar advanced nicely. Expectations for December’s report are more cautious. Economists foresee an increase of 172,000 positions while Average Hourly Earnings are expected to hold up at 3.1%. The data feed into the upcoming Fed decision.

Canadian jobs report: Friday, 13:30. After several superb labor market figures in mid-2019, the latest statistics from Canada fell short of expectations. The nation lost a whopping 71,200 positions in November, sending the unemployment rate to 5.9%. Markets expect a 20,000 gain in December, with the unemployment rate falling to 5.8%.

Canadian jobs report

US Non-Farm Payrolls


Update: No changes! We remain the same. The EURUSD is in a downtrend in general with a midterm uptrend. At the present, the pair is facing a strong resistance level that could be found at 1.1240. Any move above that level (a breakout with a daily close) will be considered as a positive sign that could push the price of the pair upwards towards the level of 1.1250 and 1.1300 respectively.  I still prefer selling the EURUSD from every resistance level it meets, keeping in mind that bearish evidence is needed to confirm the expected decline. Expected targets of the downside scenario are as follows: 1.1100 – 1.1050.

Resistance levels: Support levels: Recommended:
▪ 1.1350
▪ 1.1300
▪ 1.1250
▪ 1.1050
▪ 1.1000
▪ 1.0950
We are bearish as long as the pair is traded below the level of 1.1250.

Update: The price reacted very negatively which supports the downside scenario. Again, the pair could return above the 1.3300 strong resistance level which can open the door for further upward movement during the week. For this move to be confirmed, we need to see at least a daily close above the mentioned above resistance level. If that happens, we can go long targeting the level of 1.3400 followed by the closest resistance level after it that is 1.3500. On the downside, if the pair shows up bearish behavior below the level of 1.3300, then a decline is expected that we might see 1.3100 followed by 1.3000.

Resistance levels: Support levels: Recommended:
▪ 1.3400
▪ 1.3350
▪ 1.3300
▪ 1.2880
▪ 1.3000
▪ 1.2850
Waiting for the pair to confirm its next movement.
  • GOLD

Update: Target was hit! The general trend of the Gold is bullish. Therefore, we anticipate that the pair might continue going upwards to reach the level of 1579 during the week. This scenario is conditioned by the continuation of trading above the level of 1553. Moving below the support level of 1553 gives the Gold an opportunity to reverse the trend which is still bullish. Bears could be in control after a daily close below the 1553 support level which might cause the pair to continue going downwards towards the level of 1545 followed by 1540.

Resistance levels: Support levels: Recommended:
▪ 1579
▪ 1575
▪ 1553
▪ 1545
▪ 1540
We are bullish as long as the pair is traded above the level of 1553.

Update: The pair is trading in a tight range. Bears are in a very clear control as could be seen on the chart above. Before thinking about entering the market, we must find a good station. Therefore, we believe that waiting for the pair to reach the support level of 0.6750 would be the best thing to do. The support area located among the level of 0.6750 and 0.6685 is where we can look for bullish evidence to go long. Better to wait for the opportunity to be fully formed.

Resistance levels: Support levels: Recommended:
▪ 0.7123
▪ 0.6988
▪ 0.6941
▪ 0.6750
▪ 0.6685
▪ 0.6650
Waiting for the pair to reach the support area mentioned in the report.

Update: We remain the same. Lower highs and lower lows, suggesting a strong control of sellers. It is worth waiting for the pair to reach the resistance level of 144.50 which is where we can go short in case bearish evidence shows up below it. Our targets are: 141 followed by 140. A breakout above the resistance level of 144.50, could open the door for further upwards movement during the week that it might reach the level of 146.50.

Resistance levels: Support levels: Recommended:
▪ 146.50
▪ 146.00
▪ 144.50
▪ 141.00
▪ 140.50
▪ 140.00
Waiting for the pair to reach the resistance level of 144.50.

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