US private payrolls only increased by 89,000 jobs last month, against economists’ expectations of 160,000. And it doesn’t matter that the data turned out worse than expected; what’s more important is that the latest figures were incredibly low for the US labor market. So, it’s not surprising that the dollar was broadly weak on Wednesday. It started to show signs of fatigue right from the opening of trading. In fact, it was because of the forecasts themselves. After all, to maintain labor market stability, employment in the United States should be growing by more than 200,000 per month. At least on average. So, it can grow less, but in the next month, it must increase much more. The problem here is that employment has been growing at insufficient rates for the second consecutive month.
Moreover, we shouldn’t forget about the dollar’s overbought condition, so today, the greenback may continue to lose ground even if the economic calendar is basically empty. Of course, data on jobless claims will be published, but the expected changes are so insignificant that it probably won’t have any impact, provided that the actual data coincide with the forecasts.
The GBP/USD pair is going through a corrective phase from the upper area of the psychological level of 1.2000/1.2050. As a result, there was an increase in the volume of long positions, and the pound is up by about 100 pips.
On the four-hour chart, the RSI upwardly crossed the 50 middle line. As a result, the volume of long positions increased.
The Alligator’s MAs are intertwined in the 4-hour chart, indicating a slowdown in the downward cycle.
Outlook
Despite the current phase, the pound has lost about 1000 pips from the downward cycle. Therefore, the British currency still appears oversold, making it possible for long positions to recover. The bearish scenario will come into play in case the price returns below 1.2050 level. This move will extend the downward movement, possibly to the lower band of the psychological level of 1.1950/1.2000.
Complex indicator analysis indicates a retracement phase in the short-term and intraday periods. Meanwhile, in the mid-term period, the indicators are reflecting a downward cycle.
The material has been provided by InstaForex Company – www.instaforex.com
US private payrolls only increased by 89,000 jobs last month, against economists’ expectations of 160,000. And it doesn’t matter that the data turned out worse than expected; what’s more important is that the latest figures were incredibly low for the US labor market. So, it’s not surprising that the dollar was broadly weak on Wednesday. It started to show signs of fatigue right from the opening of trading. In fact, it was because of the forecasts themselves. After all, to maintain labor market stability, employment in the United States should be growing by more than 200,000 per month. At least on average. So, it can grow less, but in the next month, it must increase much more. The problem here is that employment has been growing at insufficient rates for the second consecutive month.
Moreover, we shouldn’t forget about the dollar’s overbought condition, so today, the greenback may continue to lose ground even if the economic calendar is basically empty. Of course, data on jobless claims will be published, but the expected changes are so insignificant that it probably won’t have any impact, provided that the actual data coincide with the forecasts.
The GBP/USD pair is going through a corrective phase from the upper area of the psychological level of 1.2000/1.2050. As a result, there was an increase in the volume of long positions, and the pound is up by about 100 pips.
On the four-hour chart, the RSI upwardly crossed the 50 middle line. As a result, the volume of long positions increased.
The Alligator’s MAs are intertwined in the 4-hour chart, indicating a slowdown in the downward cycle.
Outlook
Despite the current phase, the pound has lost about 1000 pips from the downward cycle. Therefore, the British currency still appears oversold, making it possible for long positions to recover. The bearish scenario will come into play in case the price returns below 1.2050 level. This move will extend the downward movement, possibly to the lower band of the psychological level of 1.1950/1.2000.
Complex indicator analysis indicates a retracement phase in the short-term and intraday periods. Meanwhile, in the mid-term period, the indicators are reflecting a downward cycle.
The material has been provided by InstaForex Company – www.instaforex.com
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