Last Friday, we learned the number of new non-farm jobs in the US. The second data release of the year surprised the market, with the data beating expectations by 332k to 517k.
The market reacted strongly by strengthening the dollar against major currencies and precious metals such as gold and silver. The market reaction was related to the fact that the good condition of the labour market might encourage the Fed to be more drastic in its monetary policy and raise interest rates more forcefully (by 50bp instead of 25bp).
The EURUSD pair fell by 150p after the NFP publication , GBPUSD by 215. The USDJPY pair reacted very strongly, where the yen lost more than 280p to the dollar.
EURGBP – price breaks out of the inside bar
The pair of two European currencies EURGBP has been moving in an upward swing since the beginning of February this year. Today, an inside bar formation appeared and the price broke out the bottom. The MACD has entered a downward phase and is pointing south. The nearest target for sellers could be the support and resistance level of 0.8895.
And what can we find out on the daily chart?
On the daily chart, for the time being the MACD does not indicate declines. However, if the price falls below the aforementioned S/R = 0.8895 level and the MACD has changed direction to the south – a downward divergence would appear and this would be a forecast of a deeper correction.
I will talk more about this pair and several others in my live sessions:
LIVE EDUCATION SESSIONS
This WEEK 6 (06 FEB-10 FEB) I am pleased to invite you to several online sessions. Below is the schedule of meetings:
Links: BASIC (beginners room) ADVANCED ROOM
The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
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