The EUR/USD tried to move above 1.3400 several times yesterday, however, the pair did not succeed and always reversed back down. The Euro decreased following the disappointing EU Flash CPI which showed inflation to slow and rise by 0.4%, instead of the expected 0.5%. Low inflation is adding pressure to the European Central Bank to add monetary stimulus to avoid deflation. This would cause the pair to decrease and move down.
Today, the main event will be the Non-farm payrolls report which will be released at 12.30pm GMT. With consistently stronger U.S. labour data we should expect the pair to test its support.
The movement is sideways. Support is found at 1.3350 and resistance at 1.3420.
AUD/USD
The AUD/USD pair dropped by almost 140 pips during the last 3 trading sessions and fell to 0.9280. The price is now at an 8 week low as the U.S. Dollar advanced before today’s Non- Farm Payroll’s release which could push the price even lower. U.S. data is watched closely as Yellen has stated with continuous improvement, interest rates could be raised sooner than expected.
In addition to NFP, traders should also watch the ISM manufacturing data at 2pm GMT as it could affect the pair again before the market closes.
The trend is sideways. Support is found at 0.9280 and resistance at 0.9380.
August 1, 2014 – Forex News
EUR/USD
The EUR/USD tried to move above 1.3400 several times yesterday, however, the pair did not succeed and always reversed back down. The Euro decreased following the disappointing EU Flash CPI which showed inflation to slow and rise by 0.4%, instead of the expected 0.5%. Low inflation is adding pressure to the European Central Bank to add monetary stimulus to avoid deflation. This would cause the pair to decrease and move down.
Today, the main event will be the Non-farm payrolls report which will be released at 12.30pm GMT. With consistently stronger U.S. labour data we should expect the pair to test its support.
The movement is sideways. Support is found at 1.3350 and resistance at 1.3420.
AUD/USD
The AUD/USD pair dropped by almost 140 pips during the last 3 trading sessions and fell to 0.9280. The price is now at an 8 week low as the U.S. Dollar advanced before today’s Non- Farm Payroll’s release which could push the price even lower. U.S. data is watched closely as Yellen has stated with continuous improvement, interest rates could be raised sooner than expected.
In addition to NFP, traders should also watch the ISM manufacturing data at 2pm GMT as it could affect the pair again before the market closes.
The trend is sideways. Support is found at 0.9280 and resistance at 0.9380.
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