EUR/USD: Navigating the Correction Amidst NFP Anticipation
EUR/USD: Navigating the Correction Amidst NFP Anticipation
The EUR/USD has unfolded as predicted, maneuvering within a correction phase and signaling a bearish trend. Recent market movements saw a retest of the previous resistance level, and the Asian session kickstarted a pullback in alignment with the prevailing downtrend. Eyes are now turned toward the eagerly awaited Nonfarm Payrolls (NFP) report in the US, set to disclose crucial insights into the labor market's performance for November.
Market expectations anticipate an NFP increase of 180,000 jobs. A figure surpassing 200,000 could prompt a reconsideration of the Federal Reserve's policy timeline, potentially bolstering the USD in the immediate aftermath. Conversely, a disappointing print below 150,000 might challenge the resilience of the USD against other currencies as the week draws to a close.
In the backdrop, wage inflation is projected to slightly decrease from 4.1% to 4%, while the Unemployment Rate is anticipated to maintain its standing at 3.9%. These factors will play a pivotal role in shaping investor sentiment and influencing market dynamics.
Notably, the economic calendar also includes the University of Michigan's preliminary Consumer Sentiment Survey for December. While significant, the labor market data is likely to overshadow its impact on market movements.
As the trading community braces for the NFP revelations, the technical analysis signals a predisposition towards a short continuation for the EUR/USD. Traders are advised to stay vigilant and responsive to the unfolding market dynamics in the wake of these critical economic indicators.
Our preference
Short positions with targets at 1.0745 & 1.0720 in extension.
The EUR/USD has unfolded as predicted, maneuvering within a correction phase and signaling a bearish trend. Recent market movements saw a retest of the previous resistance level, and the Asian session kickstarted a pullback in alignment with the prevailing downtrend. Eyes are now turned toward the eagerly awaited Nonfarm Payrolls (NFP) report in the US, set to disclose crucial insights into the labor market's performance for November.
Market expectations anticipate an NFP increase of 180,000 jobs. A figure surpassing 200,000 could prompt a reconsideration of the Federal Reserve's policy timeline, potentially bolstering the USD in the immediate aftermath. Conversely, a disappointing print below 150,000 might challenge the resilience of the USD against other currencies as the week draws to a close.
In the backdrop, wage inflation is projected to slightly decrease from 4.1% to 4%, while the Unemployment Rate is anticipated to maintain its standing at 3.9%. These factors will play a pivotal role in shaping investor sentiment and influencing market dynamics.
Notably, the economic calendar also includes the University of Michigan's preliminary Consumer Sentiment Survey for December. While significant, the labor market data is likely to overshadow its impact on market movements.
As the trading community braces for the NFP revelations, the technical analysis signals a predisposition towards a short continuation for the EUR/USD. Traders are advised to stay vigilant and responsive to the unfolding market dynamics in the wake of these critical economic indicators.
Our preference
Short positions with targets at 1.0745 & 1.0720 in extension.
Trade closed: target reached:
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🔥 UP to 4000$ BONUS: forexn1.com/broker/
🇺🇸 US ZERO SPREAD BROKER: forexn1.com/usa/
🟪 Instagram: www.instagram.com/forexn1_com/
