February 17, 2018 Facebook  twitter  Google+
U.S. Jobs Data in the Focus as Bearish Pressure Mounts
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Forex News: The pair bounced higher yesterday and moved above the 50 period Exponential Moving Average ahead of the FOMC Minutes release, which created some Dollar strength but nothing substantial. Overall the session belonged to the bulls but bearish pressure has increased.

Technical Outlook

The climb above the 50 period EMA and above the resistance at 1.0460 seems fragile and the risks of a drop have increased due to bearish pressure. If the buyers can keep the pair above these two elements, we expect price to test the level at 1.0525 but for now the picture is blurry and a clear direction is not in place. Because the pair is mostly ranging, look for direction changes at overbought/oversold levels or at support/resistance.

Fundamental Outlook

Today at 1:15 pm GMT we take a first look at the U.S. employment situation with the release of the ADP Non-Farm Employment Change. The indicator shows changes in the number of employed people, excluding government and the farming sector; usually the impact is lower than the Government data released Friday but nonetheless, higher numbers than the anticipated 171K (previous 216K) can strengthen the US Dollar.



The level at 1.2200 offered good support and the pair bounced higher immediately after touching it. The US Dollar had a mixed reaction when the FOMC Minutes were released and now the pair is showing rejection around resistance.

Technical Outlook

After moving briefly above 1.2325 and above the 50 period Exponential Moving Average, the pair shows signs of rejection. Resistance is not yet broken, so if we will see today a move below the 50 EMA, it would mean that the bears are ready to take control again and this would make 1.2250 the next destination. To the upside the first target is 1.2385 if the pair moves above 1.2325 again.

Fundamental Outlook

The final British survey in this week’s series of three is released today at 9:30 am GMT: the Services Purchasing Managers’ Index. Just like the other two surveys, this one shows the level of optimism regarding business conditions as perceived by purchasing managers from the respective sector; values above the forecast 54.8 usually strengthen the Pound but the impact is medium most of the times.

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