Jump to content

EUR/USD Steady as the US Dollar Firms Ahead of Non-Farm Payrolls. Where To For Euro?


Recommended Posts

EUR/USD edges higher, with all eyes on US non-farm payrolls | IG US

EURO, EUR/USD, US DOLLAR, CRUDE OIL, FED, NFP, BULLARD - TALKING POINTS

  • Euro is sidelined for now as US Dollar strength dominates markets
  • APAC equities were mixed despite more bad news from Chinese developers
  • WTI crude marched higher again today. Will EUR/USD feel the energy pinch?

The Euro has seen volatility continue to remain subdued as the US Dollar hits pause on its run higher. The market is set to shift focus from a hawkish Fed to the real economy, with jobs data due out in the US today.

According to a Bloomberg survey, the market is expecting a 447k change in non-farm payrolls for December against 210k from last month.

St. Louis Fed President James Bullard re-iterated the Fed’s hawkish stance with comments overnight that a rate hike could be coming in March. 2-year Treasury notes continue to trade at higher yields, moving above 0.88% today.

APAC equities have had a mixed session with Hong Kong’s Hang Seng index and Australia’s ASX 200 up over 1%. Japanese and Chinese mainland indices were little changed.

Another Chinese builder default was announced today. It comes at a time when the PBOC has surprised markets by reducing liquidity.

US futures are pointing towards a positive start to Wall Street at the time of going to print.

Crude oil made a 7-week high today with the WTI futures contract ensconced above USD 80 a barrel.

Higher oil prices come as tensions continue to mount between NATO and Russia, this time over events in Kazakhstan. With the northern winter about to bite, the geo-political brinkmanship over energy supply might play a larger role for markets going forward.

Alongside the upcoming US non-farm payrolls, Canadian jobs data will also be released.

 

EUR/USD TECHNICAL ANALYSIS

EUR/USD has been caught in a range between 1.11861 and 1.13860 since mid-November.

The recent low at 1.11861 is just above the June 2020 low of 1.11850. These two levels may provide support.

This sideways movement between 1.11861 and 1.13860 has seen volatility collapse, as shown by the narrowing of the 21-day simple moving average (SMA) based Bollinger Band.

This range trading environment to start the new year appears to be well entrenched for now.

When market ranges tighten, the Bollinger Band might be a signal to watch for a volatility breakout. The initial break outside the 2 standard deviation band is a possible indicator of an emerging trend.

The 55-day SMA may offer resistance, currently at 1.13727, just above the upper Bollinger Band.

Potential resistance could be at the previous highs and pivot points at 1.13830, 1.13865, 1.15133, 1.16694 and 1.16922.

EUR/USD CHART

Chart created in TradingView

Written by Daniel McCarthy, Strategist for DailyFX.com. 7th Jan 2022

  • Thanks 1
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • In the wake of a brewing conflict between the Nigerian government and Binance, cryptocurrency enthusiasts find themselves on edge, uncertain about the future of their digital investments. Rumors abound that Binance, along with other platforms, might be exacerbating the Naira's devaluation against the dollar, prompting the government to take a hard stance against the exchange. Despite longstanding allegations of wrongdoing, recent events have propelled the government to escalate its actions. The situation has escalated dramatically, with Binance's P2P platform disabled and a staggering $10 billion fine imposed for alleged illegal activities. This punitive measure, coupled with last year's $4.3 billion fine by the SEC, underscores the gravity of the situation. However, skepticism lingers regarding the astronomical sum demanded by the Nigerian government. While Binance has faced regulatory challenges in other jurisdictions, its resilience and market dominance have largely endured. Yet, the potential ramifications of losing access to a key crypto market like Nigeria cannot be ignored. Complicating matters further, the Nigerian House of Representatives has summoned Binance CEO Richard Teng, issuing a seven-day ultimatum for him to address allegations of terrorist financing and money laundering, among other charges. This development casts a shadow over the future prospects of Binance in the country. Amidst the uncertainty surrounding Binance's operations in Nigeria, users are scrambling to identify alternative platforms. While other centralized exchanges (CEX) remain operational within the country, the pressing question remains: which platform will emerge as the most dependable alternative should the situation worsen? https://punchng.com/reps-summon-binance-boss-over-alleged-terrorism-financing/
    • 2024 has been a good year for crypto traders with signs of a bullish market prevailing. For the first time in 3 years, we are witnessing BTC set a new ATH repeatedly. If you endured the prolonged bear market of the previous years, you deserve these gigantic green candles! In addition to BTC's incredible run, several alts have broken out nicely; Ai, memecoin, GameFi projects and so on have spiked. Most notably in the month of February is the run of CEX tokens. According to Foresight News, centralized exchange tokens boast of a widespread price spike in February, based on data from ICO Analytics. Standing tall amongst many is BGB with 62% increase, while ASD, BNB, and KCS witnessed gains of 45%, 33%, and 22% respectively. As a BGB holder myself who’s been holding since June 2023 at an average price of $0.45, it’s been an incredible journey. I’ve witnessed it smash its ATH over again, the latest coming in February when BGB set a new ATH of $1.15. Aside the juicy ROI, BGB usecases have been a flex for me, granting me access to exclusive events, like Launchpads where I’ve also managed mouth-watering gains from my participations. BNB had a remarkable run in the last bull cycle, sadly I missed out having sold mine for peanuts. If you said I’m stoked to right my wrong with BGB this time, you wouldn’t be far from the truth!  Which CEX token(s) are you keenly observing?
    • Look at the transaction log to see why, Most of the time it's because your stop loss is set too close. 
×
×
  • Create New...
us