EUR/USD: NFP's provoke profit taking - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 5, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the EUR/USD pair is ending the day pretty much flat around 1.0860, having extended its decline earlier in the day down to 1.0833, a fresh 3-month low. The data released in Europe were soft, with German new orders in manufacturing in September down by 1.7% and retail sales in the EU, for the same month, decreased by 0.1%."

    "That, alongside with a strong opening in European stocks led the common currency lower. In the US, applications for jobless benefits rose to 276K, the highest in five weeks, while the US Bureau of Labor Statistic reported that the Unit labor costs decreased 1.8% during the second quarter, rather than decreasing 1.4% as previously reported, while the preliminary reading for third quarter showed an increase of 1.4%, well below the 2.3% expected. The figures were pretty discouraging ahead of the release of US Nonfarm Payrolls this Friday, pushing investors to pause their dollar's buying.

    "Technically, there has been no much of a change to the dominant bearish trend, given that daily basis, the pair posted a lower low and a lower high. The short term picture has turned neutral according to the 1 hour chart, as the price hovers around a flat 20 SMA, whilst the technical indicators head nowhere around their mid-lines.

    In the 4 hours chart, the 20 SMA presents a strong bearish slope above the current level, currently around 1.0930, while the technical indicators have corrected the extreme oversold readings reached at the beginning of the day, and remain well below their mid-lines. Nevertheless, the US employment report will set the tone during the last day of the week, regardless technical readings."
    For more information, read our latest forex news.

Share This Page

free forex signals