GREENBACK LOSES POSITIONS AFTER LABOR MARKET DATA RELEASE
Volatility increased for the EUR/USD following the publication of surprising macro statistics on the labor market in the US. The unemployment rate decreased to 4.1% in October which is 0.1% less than expected, and the number of non-farm payrolls for October increased by 261,000 against the 312,000 forecasted. September’s figure was also revised down from 33,000 to 18,000. The instability in the figures is blamed on the impact of hurricanes Irma and Harvey on economic activity.
Another important factor that will influence the mood of traders is confirmation that Jerome Powell will become the next head of the Fed. He is known for his hawkish views and good relations with the other FOMC members which has reduced fears around the appointment of the next Fed chairman.
The AUD/USD weakened at the beginning of the trading session and bears were stimulated by the disappointing data on retail sales, which have not changed in September despite the forecasted increase of 0.4%. Currently investors are fixing positions due to the fall of the greenback and ahead of the weekend.
The USD/CAD demonstrated a powerful descending impulse after the publication of the labor market statistics in the US and Canada. The USD fall was able to offset the rise in the unemployment rate in Canada by 0.1% to 6.3%. At the same time, employment has grown by 55,600 in October against 15,300 forecasted which is positive for the Canadian dollar.
The EUR/USD keeps moving within the limits of the local rising channel. In case of maintaining the current positive impulse, the immediate targets will be located at 1.1730 and 1.1825. The closest support levels in case of decline will be in the 1.1600-1.1620 range and breaking through it, may become the trigger for a massive selloff with t potential drops to 1.1550 and 1.1500.
The AUD/USD is correcting upwards after it was not able to continue falling. Negative dynamics may resume after touching the SMA100 and resistance at 0.7700. In this situation, the first target will be at 0.7635. On the other hand, gaining a foothold above 0.7700 is likely to become the basis for continued price increases up to 0.7740 and 0.7800.
After a long price consolidation above the 1.2800 level, the quotes were able to break through it and within the current impulse, the USD/CAD may fall to 1.2665 and 1.2550. Potential correction is possible up to 1.2800 and SMA100 on the 15-minute chart. The RSI on the 15-minute chart is in the oversold zone, indicating a possible rebound in the near future.