FOREX TRADING

Jobs Data Disappoints, USD Edges Up

The major currency pairs teetered within a close range in the Friday session, whipsawing sharply following the release of the October US unemployment report. The euro slid from above the 1.49-level to a session low at 1.4814 while the yen jumped to 89.62 against the greenback.

The October labor report was worst than expected, with the unemployment rate climbing to a fresh 26-year high at 10.2% versus 9.8% from September. The non-farm payrolls figure revealed a loss of 190k jobs in October, worst than the forecasted loss of 175k jobs from a downwardly revised September reading of 219k jobs lost. The worst than estimated jobs data sent US equity futures lower and pushed the greenback higher on a shift from riskier assets.

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Majors Trading In Ranges During Session

Overall, the major currency pairs saw some dollar weakness going into the Asian session. The euro decline the most by dropping 24 pips, while the Aussie declined 19 pips. The cad, swissy, and yen weakened by around ten pips while the pound was still trapped by the major moving averages and managed to move just 3 pips.

The euro (Eur/Usd 1.4918) tried to stay above the neutral swing point at 1.4935 at the beginning of the Asian session but was ultimately rejected. The pair found resistance at the 1.4950 level early in the Asian session and found a slight level of support at 1.4920. Should the pair continued to weaken the S1 level at 1.4875 could provide further support while resistance stands at the 1.5000 level.

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Markets Stalls, But Yen Moves

Overall, the forex market continued to trade with very thin momentum during the U.S. session. The only exception was the yen, but the rest of the market traded far below the ATR of the last few weeks. This comes, as investors prepare for the Bank of England and for the European Central Bank to announce the latest monetary policy developments tomorrow, during the late European/early U.S. session.

Dollar Index Technical View:

Daily chart trend: Long possibilities. Main price points: 75.83. Looking for: Wave V low

Prices on the dollar index chart were recently testing the upper resistance line of a trading channel, where a possible long break-out will confirm that wave V of a black C is done. However, this is not the case yet, and as such move into much deeper levels is still possible over the coming days, especially once the current 75.83 low is taken out. In this case, we will be looking for a new wave V target somewhere around 74.00 support zone.

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