Currency forecast: the impact of unemployment data in the USA on financial markets
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Data on the labor market were published in the USA, which testify to its further strengthening. Unemployment amounted to 3.4% against the expected 3.5% – a new historical record. The US Federal Reserve received additional arguments for the continuation of a “hard” monetary policy with an increase in the discount rate and a reduction in the balance sheet. All this leads to the strengthening of the US dollar in the long term. This was reported by RoboForex analyst Andrei Goilov.
Chart of the currency pair EURUSD, D1.
EUR returned to the levels of the beginning of April last year. The ECB’s “tough” monetary policy has led to an increase in demand for it, but it still remains “weak” compared to the US dollar. Support was formed in the EURUSD currency pair — 1.0841. If it is broken, the dollar will strengthen to the level of 1.0710. At the same time, for further growth of EUR, quotes must remain above the 1.0924 mark.
Chart of currency pair USDCHF, D1.
If the USDCHF pair is fixed above the level of 0.9149, the dollar will rise to the level of 0.9402. Otherwise, a price channel will be formed within the limits of 0.9071−0.9258. One way or another, the probability of a significant strengthening of the CHF against the USD in the near future is small.
Chart of currency pair AUDUSD, D1.
A wide price channel was formed in the AUDUSD currency pair — 0.6872−0.7143. Apparently, it will be maintained for the next few weeks, until the release of inflation data in the US. A price stabilization below the level of 0.6997 may be a signal for further strengthening of the dollar. This will be confirmed by the breakdown of the lower border of the existing channel.
Chart of currency pair USDJPY, D1.
A support level of 127.41 was formed in the currency pair USDJPY. Resistance now stands at 132.83. If the price is fixed below the level of 130.76, the dollar may weaken to 125.55. If the resistance is broken, the woman will be able to reach the mark of 134.42.
Source: Ministry of Finance
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