Forex Signals Brief for Dec 7: Non-Farm Payrolls in Focus
Rowan Crosby • 2 min read
US markets opened on Thursday in what can best be described as being a little bit on thin ice. However, they managed to regain some composure and traded strongly into the close.
That’s a positive sign, given that the spark for the early selling came on the back of more US-China concerns and the arrest of the Huawei CFO didn’t help matters. President Trump tweeted that he was confident of a deal, but so far that hasn’t lifted markets.
Fortunately, we have some more opportunities today to turn things around and the key event will clearly be US employment data. The ADP figure came in a touch weak yesterday which disappointed. However, that doesn’t mean the official figure won’t show more than 200K jobs which is the expectation.
We also have employment data for Canada today, as well as Eurozone GDP. Keep an eye out for Chinese data over the weekend also, as there are growing concerns that the health of their economy isn’t as good as many think.
Forex Signal Update
The FX Leaders Team finished with three winners and the three losers with many of the majors being our key focus.
EUR/GBP – The EUR/GBP continues to grind higher, but has recently pulled back from resistance. If we get a good price look for a long signal here and a retest of those highs.
Gold – Active Signal
Risk-off was the order of the day in early trade yesterday, but things quickly reversed. Gold has run into resistance which is a positive for our long-term trade. We are still in both our long and short-term positions.
GBP/JPY – Active Signal
The GBP/JPY is trading between two key levels at the moment and we are currently moving lower. We are short below 144.00, looking for a move down towards key support.
It looks like the bears are certainly back in control of Bitcoin at the moment. Readers of the signal brief will know that I’ve been very bearish of recent times and that won’t be changing anytime soon.
Price has fallen through the support level at $3,500 and is now pressing lower. In what is even more of a worry, the buyers that were there previously have all but vanished as price slid straight on through.
I suspect we will be looking at a test of $3,000 in the very near future and there might be more to come. There simply appears to be little to no buying interest at all from long-term players.