US unemployment claims reactivate the USD bulls - Forex News by FX Leaders

US unemployment claims reactivate the USD bulls

Posted Friday, January 30, 2015 by
Skerdian Meta • 1 min read

The USD bulls have taken some time off in the last 3-4 days since EUR/USD broke below 1.11 during early Asian session on Monday. The drop in the durable goods orders on Tuesday cast a shadow on the rate hike decision by the FED and might have scared them off. So the USD pairs have been in an upside correction from Monday to Wednesday evening. But yesterday the US unemployment claims fell nearly 40K week on week and that´s the biggest decline since April 2009. This was the signal the USD bulls were waiting for. The downside looks more favorable now for GBP/USD, EUR/SD, AUD/USD and NZD/USD.

We used this turn of events to our benefit. We have issued a few sell signals on these pairs and they have hit the profit target mostly. The US advance GDP is due later today and if that beats the expectations like it has recently done, the USD bulls will have one more reason for action. Our opinion is that we´ll see another move down in the pairs we mentioned above, so we are planning to issue more sell signals in the next 5-6 hours, unless the q/q GDP disappoints. We´ll still be careful though, because the moves might be limited and we might see corrections, like the ones we saw yesterday on these 4 pairs, where we got ourselves 3 winning buy signals. On the other hand, if the GDP numbers miss the expectations, we´ll try to play on the long side. 

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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