Forex Signals Brief for October 2nd: Will Non-Farm Payrolls Crush Gold and the Euro?

Welcome back to another exciting week guys,

As we get set to analyze a new trading week, our attention is immediately drawn to Friday and the latest edition of U.S. employment data. Only last week U.S. Federal Reserve Chairman Janet Yellen, kept on dropping hints that they were still happy to roll out interest rate rises. That lead to a strong week for the USD and the majors were all in the firing line.

Much of the focus will be around how the U.S. economy is fairing and what the job situation looks like. If we get a strong number then a rate hike seems to be all but a certainty. Yellen is speaking on Thursday local time and we should pay close attention to her thoughts ahead of Friday's jobs number.

It's another big one guys. Here's hoping for another great week!

Top Economic Data Today

EUR – German  Manufacturing PMI is set for release at 7:55 GMT and analysts are predicting no change from the prior month at 60.6.

GBP – Manufacturing PMI from the UK is out at  8:30 GMT, however, the forecast is for a decrease over the prior period at 56.4.

Gold – Can the Sell-Off Continue?

I’ve turned bearish on Gold for a while now and my strategy has been to look for key points to sell. I am expecting us to run into support at 1270, but until then I think the momentum will continue.

Gold – 240 min Chart.

Key Levels

Gold – Trading Plan

As mentioned I’m looking for a good pullback level to sell. 1290 is good resistance and it’s marginally above the downward channel that we’re in. I’m targeting 1288-1290, however, the momentum might not allow us to push this high in the short-term.

EUR/USD – USD Strength

The story with EUR/USD has been more about the USD strength rather than EUR weakness in my opinion. After the hawkish tone from the U.S. Federal Reserve, all the majors were going to be in trouble. Unfortunately, there might be more to come this week.

EUR/USD – 240 min Chart

Key Levels

EUR/USD – Trading Plan

In the short term, I’m looking for a bounce off 1.1830 and move to the downside. That’s driven by USD strength that I suspect we might see this week. If we pullback above 1.1850 resistance then we have the potential to fully retrace into the trading range.

There’s a lot of big data out this week, so stay tuned for the very best analysis and signals from our leading analysts. Good luck guys!!!!

ABOUT THE AUTHOR See More

Rowan Crosby

Asia-Pacific Analyst

Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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