Last Friday, the US labor market data was excellent; 250 thousand new jobs were created in the non-agricultural sector in October, the share of the economically active population increased from 62.7% to 62.9%, the average wage increased by 0.2%. At the end of the day, the euro fell by 18 points, but without the speculative movements that we expected in both directions. This may indicate that the offers in the level of 1.1450 are strong enough and such speculation on strong data loses its meaning. If so, then you can wait for the price to return to the original positions at 1.1300. The price of 12 pips did not reach the downward line of the price channel, but this is not a prerequisite for the trend reversal.
On the other hand, the stock market prevented the strengthening of the dollar. Despite the good data, the S&P 500 lost 0.63%, the Nasdaq even -1.04%. On the debt market, the 5-year US government bonds added to the yield from 2.965% to 3.042%. The market even dismissed the prospects of a high-quality US trade agreement with China, which is planned to be concluded on December 1 at the G-20 summit. Such a reaction implies an increase in the cash cache of investors and the potential for a repeated attack of the range of 1.1450-1.1500 in more suitable conditions. With this option, it is likely that the market will be delayed at the Krusenstern line on the daily chart (1.1520) and further growth to the high of October – 1.1622.
In the current situation, we do not see the binding of movements in the market to the elections to the US Congress, which will be on the 6th. But the actual election results can be the reason for strong speculative attacks. Perhaps for this reason they were not on Friday – the action received a delay.
On the four-hour chart, the bullish sentiment remains – the price is above all indicator lines, and the Marlin oscillator has a growth pattern.
On the daily chart, the situation is formally decreasing, but the hidden convergence of the price with the Marlin indicator fits into the scenario of continued growth. The situation is not trading, we are waiting for developments.
The material has been provided by InstaForex Company – www.instaforex.com
EUR/USD
Last Friday, the US labor market data was excellent; 250 thousand new jobs were created in the non-agricultural sector in October, the share of the economically active population increased from 62.7% to 62.9%, the average wage increased by 0.2%. At the end of the day, the euro fell by 18 points, but without the speculative movements that we expected in both directions. This may indicate that the offers in the level of 1.1450 are strong enough and such speculation on strong data loses its meaning. If so, then you can wait for the price to return to the original positions at 1.1300. The price of 12 pips did not reach the downward line of the price channel, but this is not a prerequisite for the trend reversal.
On the other hand, the stock market prevented the strengthening of the dollar. Despite the good data, the S&P 500 lost 0.63%, the Nasdaq even -1.04%. On the debt market, the 5-year US government bonds added to the yield from 2.965% to 3.042%. The market even dismissed the prospects of a high-quality US trade agreement with China, which is planned to be concluded on December 1 at the G-20 summit. Such a reaction implies an increase in the cash cache of investors and the potential for a repeated attack of the range of 1.1450-1.1500 in more suitable conditions. With this option, it is likely that the market will be delayed at the Krusenstern line on the daily chart (1.1520) and further growth to the high of October – 1.1622.
In the current situation, we do not see the binding of movements in the market to the elections to the US Congress, which will be on the 6th. But the actual election results can be the reason for strong speculative attacks. Perhaps for this reason they were not on Friday – the action received a delay.
On the four-hour chart, the bullish sentiment remains – the price is above all indicator lines, and the Marlin oscillator has a growth pattern.
On the daily chart, the situation is formally decreasing, but the hidden convergence of the price with the Marlin indicator fits into the scenario of continued growth. The situation is not trading, we are waiting for developments.
The material has been provided by InstaForex Company – www.instaforex.com
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