US dollar moved lower against major currencies such as the Euro and the British pound, as it approaches an important i.e. event lined up today.
US nonfarm payrolls and the unemployment report will be released by the US Department of Labor later during the NY session.
US NFP is slated for an increase of 234K, less than the last reading of 252K.
US Non-Farm PayrollsLater today, the US nonfarm payrolls and the unemployment report will be released by the US Department of Labor. The forecast is slated for an additions of 234K jobs in January 2015, compared to the preceding month’s increase of 252K. The US unemployment rate is expected to remain at 5.6%. Overall, the forecast is of yet another solid jobs report. Any reading above the 220K mark might be considered on the positive side and could help the US dollar. One thing to remember there is the fact that over the last 12 months or so, we've become used to 200K gain for the nonfarm payroll. So, if there is any major miss in the print, then it might catch attention of the US dollar sellers.Moreover, the Average Hourly Earnings is forecasted to register a rise of 0.3% in January 2015, compared with the last decline of 0.2%.Technical AnalysisOne of the major pairs which we can keep an eye is EURUSD. It has bounced sharply during the past couple of sessions. The most important aspect is that the pair settled above the 100 simple moving average (SMA) – 4H, which is a short-term bullish sign. There is even a bullish trend line formed on the 4-hour chart that acted as a support for the pair on numerous occasions.On the upside, initial resistance is around the last high of 1.1530 level, which if breached might open the doors for acceleration towards the next area at 1.1600. On the downside, initial support is around 100 SMA (4H), followed by the highlighted trend line.Asian Session RecapToday during the Asian session, there was a major release lined up in Australia. The RBA Monetary Policy Statement was released by the Reserve bank of Australia. The report was not that bearish as expected, which kind of helped the AUDUSD pair in the short term. The pair traded as high as 0.7857 with resistance around 0.7860-80.
On the upside, initial resistance is around the last high of 1.1530 level, which if breached might open the doors for acceleration towards the next area at 1.1600. On the downside, initial support is around 100 SMA (4H), followed by the highlighted trend line.Asian Session RecapToday during the Asian session, there was a major release lined up in Australia. The RBA Monetary Policy Statement was released by the Reserve bank of Australia. The report was not that bearish as expected, which kind of helped the AUDUSD pair in the short term. The pair traded as high as 0.7857 with resistance around 0.7860-80.
On the upside, initial resistance is around the last high of 1.1530 level, which if breached might open the doors for acceleration towards the next area at 1.1600. On the downside, initial support is around 100 SMA (4H), followed by the highlighted trend line.Asian Session RecapToday during the Asian session, there was a major release lined up in Australia. The RBA Monetary Policy Statement was released by the Reserve bank of Australia. The report was not that bearish as expected, which kind of helped the AUDUSD pair in the short term. The pair traded as high as 0.7857 with resistance around 0.7860-80.