2 June 2017

US Non-Farm Payrolls: Friday, 12:30. This is the last report before the important Fed decision in June and could make the difference between raising the rates and staying put. The report for April was mixed. It showed a very healthy gain of 211K jobs. This robust growth in jobs also shows there is still a lot of slack in the market, undermining the validity of the extremely low unemployment rate of 4.4%. The participation rate slipped to 62.9%, still far below pre-crisis levels. The data is best sanitized via the average hourly earnings numbers. Year over year, Americans saw a minute raise of only 2.5%. So, while gains in jobs are always welcome, there is still a long way to go. Markets will be watching wages very closely. Expectations stand at 186K, an unemployment rate of 4.4% once again and a rise of 0.2% in hourly wages after 0.3% last month.

USD
US Non-Farm Payrolls

  • EURUSD

Update: Yesterday’s trading session was bullish but the pair is still traded below the level of 1.1272.The pair is still traded right below last weekly’s key level (resistance) which could help the USD the gain value against the EURO. Therefore, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.1100 during the weekly followed by 1.1000.

Resistance levels: Support levels: Recommended:
▪ 1.1272
▪-1.1300
▪ 1.1350
▪ 1.1200
▪-1.1150
▪ 1.1100
We remain bearish as long as the pair is traded below the level of 1.1272.
  • GBPUSD

Update: A few bullish candles have shown up lately, this would support our bullish scenario. As could be seen on the chart above that the pair is traded right above a strong support level around 1.2750 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1.3000 during the day. In case that the level of 1.2750 is broken, then the way would be open for the pair to reach the level of 1.2700 followed by 1.2600.

Resistance levels: Support levels: Recommended:
▪ 1.3000
▪-1.3100
▪ —
▪ 1.2750
▪ 1.2700
▪ —
We remain bullish as long as the pair is traded above the level of 1.2750.
  • GOLD

Update: A consolidation and ranging could be detected on the chart, this actually shows the importance of downtrend show on the chart on red. This support the weekly scenario. The pair is on its way to reach a strong resistance level that is the downtrend shown on the chart in red. We believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1250 during the day. This is conditioned by the continuation of trading below the downtrend line.

Resistance levels: Support levels: Recommended:
▪ 1265

▪ 1270
▪ 1250
▪ 1220
▪ 1200
We remain bearish as long as the pair is traded below the downtrend line.
  • AUDUSD

The pair managed to break through a strong support level that could have been found around 0.7400. Now, it is a strong resistance level. Therefore, we remain bearish as long as the pair is traded below the level of 0.7400 that it can reach 0.7300 during the day.

Resistance levels: Support levels: Recommended:
▪ 0.7500
▪ 0.7600
▪-0.7700
▪ 0.7350
▪ 0.7300
▪ 0.7250
We remain bullish as long as the pair is traded above the level of 0.7400.
  • GBPJPY

As could be seen on the chart that the pair is traded right below a strong resistance level around 144 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 143 during the day. On the other hand, breaching the level of 144 can open the door for the pair to reach the level of 145.

Resistance levels: Support levels: Recommended:
▪ 144
▪ 145
▪ 146
▪ 142
▪ 141
▪ 140
We remain bearish as long as the pair is traded below the level of 144.