All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
Non-farm payrolls: what pairs to watch?
Analysts anticipate the level of non-farm payrolls to increase by 162K jobs (vs. 75K previously). At the same time, the level of average hourly earnings is forecast to advance by 0.3% (vs. 0.2% previously) and the unemployment rate is expected to stay stable at 3.6%. If the NFP and average hourly earnings are higher and the unemployment rate is lower than the forecasts, the USD will go up. Be careful with your trades as the USD gets super volatile after the release.
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The USD has got stronger ahead of the release, but will the situation change after 15:30 MT?
· On H4, EUR/USD has crossed the 1.1270 level (61.8% Fibo) and is currently moving downwards to the 1.1257 level, which lies close to the 200-period SMA and the lower border of the ascending channel. If the employment data is positive, the pair will fall below the 1.1257 level towards the next support at 1.1223. There is the possibility for EUR/USD to reach the next support at 1.1219 and test the next level at 1.1202, of bearish pressure is strong. On the other hand, if the employment data disappoints, EUR/USD will rise back to the resistance at 1.1288, jump above the 50% Fibo level and go higher to the next resistance at 1.1319.
· GBP/USD has been testing the lower border of the consolidation range at 1.2556 on H4. If the USD gets stronger on the release, the fall towards the next support at 1.2510 will be possible. From the upside, pay attention to the resistance levels at 1.2589, 1.2604 and 1.2635.
· USD/JPY has jumped above the 100-period SMA on H4 in anticipation of the release. The next resistance levels for the pair lie at 108.12, 108.36 and 108.49. In case of a negative release, USD/JPY will fall back to 107.74. If this level is broken, the next support will lie at 107.56. Stochastic indicator is about to form a crossover within the oversold zone, which may provide us selling opportunity.
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
Great Britain will publish its trade balance for April on June 11, at 09:00 MT time.
US PCE Price Index will be out on Friday at 15:30 MT.
Microsoft joined Apple in the $2 trillion dollar club! Follow PMI reports from the US, UK, and EU throughout the day!
The Bank of England will release its statement and announce its monetary policy decision on June 24 at 14:00 MT.