ONLINE FOREX BROKER
2020-08-07 • Updated
The pair bounced off the key resistance at 1.1900. All eyes on the NFP.
The overall trend of EUR/USD has been bullish since the middle of March. The main reason for that rally has been the weak greenback. Why does the USD continue dipping? Firstly, investors avoid it as yields are decreasing in the USA. Secondly, Democrats and Republicans can’t make an agreement on the fiscal stimulus. This uncertainty weighs on the USD. Finally, the ADP report yesterday turned out much worse than analysts expected. Employment rose only by 167 000, while analysts predicted 1.2 million. Quite a huge gap! The data proves that the US labor market is still suffering from the coronavirus pandemic. As a result, investors anticipate that NFP will be worse than the forecasts tomorrow.
However, it seems that the upside rally has slowed down. The pair has been risen not as steeply as before. Nevertheless, most analysts have bullish prospects on the euro. It may be just a natural correction. After it, the pair should continue edging up again. It hasn’t been any important economic events for the euro on the calendar this week. The pair is mainly driven by the news from the USD side.
Watch out the US NFP report on August 7 at 15:30 MT time! If the NFP is worse than the forecasts, the USD will fall, therefore, EUR/USD will rise. Otherwise, if the NFP is better than the forecasts, the USD will increase, therefore, EUR/USD will decrease.
EUR/USD is trading above the 50, 100, and 200 moving averages. Thus, the impetus stays to the upside. The RSI indicator is below 70, that means the pair isn’t overbought yet. If EUR/USD breaks out the resistance at 1.1900, it will surge higher to the key psychological mark at 1.2000. Otherwise, it may meet the support at the 61.8% Fibonacci retracement level at 1.1820. The move below this level will push the price to the next support at 1.1740.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?
The EU plans to intervene in markets directly to curb rising energy costs, threatening to push the Euro area's economy into a deep recession.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!
The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.
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