Forex News: U.S. Jobs in the Spotlight: ADP Non-Farm Employment Change
Forex News: Yesterday the pair tried again to break 1.1875 but bounced lower and reached the bottom of the channel. A worse than expected U.S. Services PMI then weakened the US Dollar, creating a brief climb.
Although the greenback was temporarily weakened by a disappointing PMI, the pair is still trying to break support and to move out of the horizontal channel created by 1.1825 and 1.1875. Given that price bounced several times at 1.1875 and is now showing some bearish momentum, we expect to see a break of 1.1825 followed by a stronger move south.
Today at 1:15 pm GMT we take a first look at U.S. jobs with the release of the ADP Non-Farm Employment Change. This report shows changes in the total number of employed people in the U.S. excluding the farming sector and Government but has a lower impact than the Non-Farm Payrolls released Friday. However, numbers above the forecast 191K usually strengthen the US Dollar.
The Sterling was weakened yesterday by a worse than expected reading for the Services PMI but later in the afternoon the U.S. Services PMI disappointed as well, so the US Dollar gave back most of the early gains, creating a choppy session.
The failed break of the confluence zone created by 1.3410 support and the 50 period EMA shows that the bulls are trying to regain control of the pair and this makes us anticipate a touch of 1.3450 or even a small climb above it. However, the pair is showing bearish pressure because it failed to break 1.3550 or to even reach it a second time and this suggests that a full candle close below the 50 EMA will mark the beginning of a longer period of downside movement.
The Pound will not be affected by major economic releases today, so the technical aspect and the U.S. jobs data will be the main price drivers.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 7-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.