Forex Signals Brief October 5: Unemployment Claims After Soft ADP Numbers
Yesterday’s Market Wrap
The day began with the RBNZ meeting, which left interest rates unchanged which sent the NZD 50 pips lower and kept NZD/USD in a range while other currencies were gaining. The 30-year treasury yields on the other hand continued to increase and touched 5.0% before buyers stepped in and pulled the yield lower. The 10-year yield reached 4.88% before falling back to previous highs. Lower rates provided equities a boost, with stock markets and the NASDAQ index increasing by 1.35%. The S&P 500 gained 0.80%, while the Dow Jones gained 0.40%.
The European final services PMI reports for September were revised higher while later the ADP employment report indicated slower-than-expected job growth, coming in at 89K, against 154K expected. Although the correlation to the more important nonfarm payroll report is not very strong.
The US services The PMI numbers came in close to predictions, but employment and new orders were particularly concerning which contributed to yields remaining stable and lower on the day. Meanwhile, WTI crude Oil prices fell below $85 despite a cheaper US dollar and a reduction in crude stockpiles of -2.2 million barrels vs a -446M projection, which pulled down the CAD with it.
Today’s Market Expectations
Today the economic calendar is light, with the Unemployment Claims from the US being the highlight of the day. In the Asian and European sessions, we have only the Construction PMI from the UK and the French Industrial Production, both of which are expected to weaken.
Later in the day, we have the US Jobless Claims data which remains one of the most important weekly releases, as the attention has shifted to the labor market, although the NFP tomorrow will take the spotlight. Last week, the employment figures exceeded forecasts once more, indicating that the labor market is still strong for the time being. The consensus is at 211k at the moment, but keep an eye on it because it is a significant labor market report.
Forex Signals Update
Yesterday the volatility increased as we saw a retreat in US bond yields and the USD as well. Our strategy has been long on the USD, which has been profitable, but we were caught on the wrong side with a few trading signals yesterday during the pullback. But we also got back some so after all we ended the day with three winning signals and four losing ones.
GOLD Retraces Higher but Remains Below the 50 SMA
XAU/USD has been struggling to find a footing as Treasury yields continue to rise. Although we saw a retreat lower on yields yesterday and Gold retraced higher, climbing above $1,830. But, buyers were unable to push the price above the 50 SMA and the main trend still remains bearish, although let’s see what today’s and tomorrow’s employment reports will bring.
XAU/USD – Daily chartÂ
- Gold Sell Signal
- Entry Price: $1,830
- Stop Loss: $1,850
- Take Profit: $1,805
Selling the Retrace in EUR/USDÂ
Since July EUR/USD has been sliding lower, with buyers maintaining control and moving averages providing support amid retraces upward. This pair has been pushed down by a strong US Dollar (USD), which has been bolstered by positive US economic data and an increase in US bond rates, and the price has fallen below 1.0450, but it has retraced above 1.05 as US bond yields have fallen.
Following the fresh low below 1.0500, this comeback provides welcome relief to Euro buyers. It remains to be seen, however, whether this is a long-term strategy. However, because buyers are having difficulty pushing the price much higher above this level, we decided to initiate a sell forex signal at the 20 SMA on the H4 chart.
EUR/USD – 240 minute chart
- EUR/USD Sell Signal
- Entry Price: 1.0505
- Stop Loss: 1.0545
- Take Profit: 1.0475
Cryptocurrency Update
 Booking Profit During the Surge in BITCOIN
On Sunday, we saw another rebound in the crypto market, as the digital coins market has been in a mood swing over the previous few weeks, with Bitocin making a nice recovery after plummeting below $25,000 in September. Buyers failed to break over the 200 SMA, and we observed a bearish candlestick yesterday following a doji last, which is a bearish reversal indication. The price had been falling for a week, but in the last two days there was a strong rally that brought it to $28,555. Although the 200 SMA (purple) acted as resistance again, rejecting the price initially, so let’s see if buyers will be able to push above this MA.
BTC/USD – Daily chart
- BTC Buy Signal
- Entry Price: $26,248.2
- Stop Loss: $24,500
- Take Profit: $28,000
ETHEREUM Fwiling at the 100 SMA
Late last month, the price of Ethereum started increasing from the support, showing that there was a degree of purchasing interest and demand for Ethereum at roughly $1,600. Buyers have entered the region above this level on multiple times, but the 100 SMA (green) has been functioning as resistance on the daily chart. After Sunday’s surge, we saw a reversal at this moving average and yesterday erased all of Sunday’s gains.
ETH/USD – Daily chart
- ETH Buy Signal
- Entry Price: $1,671.79
- Stop Loss: $1,371
- Take Profit: $1,971
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveBest Forex Brokers
| Broker | Website | |
|---|---|---|
| 🥇 |  | Visit Broker |
| 🥈 |  | Visit Broker |
| 🥉 |  | Visit Broker |
| 4 |  | Visit Broker |
| 5 |  | Visit Broker |
| 6 |  | Visit Broker |
| 7 |  | Visit Broker |
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals