View Single Post
  #27  
Old 01-08-2014, 14:03
GDMFX's Avatar
GDMFX GDMFX is offline
Level V Lasers Member
 
Join Date: Nov 2012
Location: Auckland, New Zealand
Posts: 1,688
Default Technical News | GDMFX Brokerage | Daily

FOREX NEWS: NON FARM PAYROLLS – THE WEEK’S FINAL MARKET MOVER



EUR/USD
Forex News: The pair had mixed direction yesterday as the Euro was weakened by a disappointing value of the Consumer Price Index, but apparently the US Dollar wasn’t strong enough to take the pair significantly lower.


Technical Outlook
From a four-hour chart perspective the pair is in a clear downtrend but signs of weakness are present although the support at 1.3400 was broken and was tested from below several times (visible on the lower time frames). A sign of weakness is the fact that bears failed to break the low at 1.3366 even if 1.3400 turned into resistance; also, the Relative Strength Index spent a lot of time hugging the 30 level which suggests an oversold market. However, today’s direction will be decided by the fundamental rather than the technical aspect.

Fundamental Outlook
The day’s market moving event is the release of the US Non Farm Payrolls which is the most important jobs-related data for the US economy and tracks changes in the number of employed people during the previous month, excluding the farming sector. The release is scheduled at 12:30 pm GMT and the expected change is 230K while last month’s number was 288K. Such a decrease would weaken the greenback and drive the pair higher.


GBP/USD
The Pound continued to lose ground to the US Dollar yesterday and we saw the bears in control for the most part of the day. Broken support was successfully re-tested from below and price bounced lower.


Technical Outlook
The Relative Strength Index is trading below the 30 level for an extended period of time and the short term downtrend is in need of a retracement higher. Yesterday’s low will most likely act as minor support and if today the bears don’t manage to break it, we will most likely see higher prices. The US Dollar will be highly affected by the NFP release and the technical aspect will be secondary.

Fundamental Outlook
United Kingdom’s Manufacturing PMI will be released today at 8:30 am GMT and expected to drop slightly from the previous 57.5 to 57.2. This survey is based on the opinions of purchasing managers from the manufacturing sector and acts as a leading indicator of economic health so better than expected numbers will probably strengthen the Pound.
Reply With Quote