Traders are eagerly awaiting tonight’s release of the latest US employment data to either confirm the recent raft of weaker US data prints or as was the case last month, turn things on their head. The dollar has been on the back foot for the last few days as those weaker data prints have weighed on it, but tonight’s numbers could see more volatility across currencies with the Euro in particular trading at good levels for a move.
The headline Non-Farms Employment Change is predicted to come in around the +191k level with Average Hourly Earnings at +0.3% and the Unemployment Rate remaining steady at 4% and anything off for these expected results will see moves in the market. If we get a repeat of last months higher than expected headline number, then once again expect to see the greenback rally well and the Euro to fall. Whereas a lower print or close to expectation will probably allow the recent rally to continue. The Euro is now sitting not far off trendline resistance on the hourly chart and around a big figure off the recent highs, while support levels are sitting further south after the dollar’s decline over the last week.
Resistance 2: 1.0915 – June High
Resistance 1: 1.0870 – Trendline Resistance
Support 1: 1.0735 – 200 Day Moving Average
Support 2: 1.0681 – Trendline Support
