EURUSD holds above 1.0600 ahead of the US Nonfarm payroll. It hit a high of 1.06675 yesterday and is currently trading around 1.06302.
The US economy is expected to add 178000 jobs in Oct from 336000 the previous month. Unemployment rate to remain flat at 3.8%.
The number of people who have claimed unemployment benefits rose by 5000 last week to 217000, compared to a forecast of 21000.
Major Economic data for the day
Nov 3rd, 2023, US Nonfarm payroll (12:30 pm GMT)
According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 80.4% from 79.5% a day ago.
The US 10-year yield traded weak for the second consecutive day and hit its lowest level since Oct 13th, 2023. The US 10 and 2-year spread widened to -33% from -22%.
The pair trades above short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart. Any break above 1.0700 confirms further bullishness. A jump to 1.0760/1.0800 is possible. The near-term support is around 1.0580, and any breach below targets is 1.0515/1.04800. Bullish invalidation only if it breaks below 1.0440.
Indicator (4-hour chart)
CCI – bullish
Directional movement index – Neutral
It is good to sell on rallies around 1.0598-60 with SL around 1.0700 for a TP of 1.0440
