On Thursday, markets opted for a correction across the board. Mixed sentiments from the FOMC regarding the June rate, avoiding a US default, and optimism surrounding today’s employment data prompted investors to engage in risk-buying. The S&P 500 rose by 0.99%, 5-year government bond yields decreased to 3.69% from Wednesday’s closing of 3.75%, oil increased by 3.82%, and the dollar index fell by 0.64%.
Where is the limit of this correction, at which point will the markets lose all this optimism and face the reality of liquidity withdrawal from the system? It may be as early as Wednesday, June 7th, when the first Treasury auctions begin.
Today’s US employment data may indicate some weakness (the forecast for Nonfarm Payrolls is 180,000 compared to 253,000 in April). Therefore, euro buyers of the past two days will be pleased with this. The nearest target is 1.0804. Surpassing this level opens up the target of 1.0868 – the nearest line of the embedded price channel, reinforced by the MACD indicator line. This level also represents a 50% correction from the entire movement between April 26th and May 31st.
The price is rising on the four-hour chart – above both indicator lines, and the Marlin oscillator is rising in the positive territory.
The material has been provided by InstaForex Company – www.instaforex.com
EUR/USD
On Thursday, markets opted for a correction across the board. Mixed sentiments from the FOMC regarding the June rate, avoiding a US default, and optimism surrounding today’s employment data prompted investors to engage in risk-buying. The S&P 500 rose by 0.99%, 5-year government bond yields decreased to 3.69% from Wednesday’s closing of 3.75%, oil increased by 3.82%, and the dollar index fell by 0.64%.
Where is the limit of this correction, at which point will the markets lose all this optimism and face the reality of liquidity withdrawal from the system? It may be as early as Wednesday, June 7th, when the first Treasury auctions begin.
Today’s US employment data may indicate some weakness (the forecast for Nonfarm Payrolls is 180,000 compared to 253,000 in April). Therefore, euro buyers of the past two days will be pleased with this. The nearest target is 1.0804. Surpassing this level opens up the target of 1.0868 – the nearest line of the embedded price channel, reinforced by the MACD indicator line. This level also represents a 50% correction from the entire movement between April 26th and May 31st.
The price is rising on the four-hour chart – above both indicator lines, and the Marlin oscillator is rising in the positive territory.
The material has been provided by InstaForex Company – www.instaforex.com
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