EUR/USD: Trading the US Nonfarm Employment Change

US Nonfarm Employment Change measures the change in the number of newly employed people in the US, excluding workers in the farming industry. A reading which is higher than the market forecast is bullish for the dollar. Here are the details and 5 possible outcomes for EUR/USD^[1].

Published on Friday at 12:30 GMT.

Indicator Background

Job creation is one of the most important leading indicators of overall economic activity. The release of US Non-Farm Employment Change is highly anticipated by the markets, and an unexpected reading can have a substantial impact on the direction of EUR/USD.

Nonfarm Employment Change dropped sharply in August report to 151 thousand, well short of the estimate 180 thousand. The indicator is expected to rebound in September, with an estimate of 171 thousand. Will the indicator climb higher as expected?

Sentiment and Levels

Despite a weak Eurozone economy and banking troubles, EUR/USD has shown extreme stability. Monetary divergence favors the US dollar, but the euro continues to hold its own. So, the overall sentiment is neutral on EUR/USD towards this release.

Technical levels, from top to bottom: 1.1375, 1.1335, 1.1230, 1.1190, 1.1125 and 1.1070

5 Scenarios

1. Within expectations: 168K to 174K. In such a scenario, the EUR/USD is likely to rise within range, with a small chance of breaking higher.
2. Above expectations: 175K to 179K: An unexpected higher reading could push the pair below one support line.
3. Well above expectations: Above 179K: Such an outcome could push the pair lower and two or more support lines could fall as a result.
4. Below expectations: 163K to 167K: A weak reading could result in EUR/USD breaking above one resistance line.
5. Well below expectations: Below 163K. A very soft reading could result in the pair breaking above two or more resistance lines.

For more about the euro, see the EUR/USD forecast^[2].

Get the 5 most predictable currency pairs^[3]

References

1. ^{^} EUR/USD (www.forexcrunch.com)
2. ^{^} EUR/USD forecast (www.forexcrunch.com)
3. ^{^} Get the 5 most predictable currency pairs (www.forexcrunch.com)

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EUR/USD: Trading the US Nonfarm Employment Change

US Nonfarm Employment Change measures the change in the number of newly employed people in the US, excluding workers in the farming industry. A reading which is higher than the market forecast is bullish for the dollar. Here are the details and 5 possible outcomes for EUR/USD^[1].

Published on Friday at 12:30 GMT.

Indicator Background

Job creation is one of the most important leading indicators of overall economic activity. The release of US Non-Farm Employment Change is highly anticipated by the markets, and an unexpected reading can have a strong impact on the direction of EUR/USD.

Nonfarm Employment Change dropped to 257 thousand in July, but this easily beat the forecast of 180 thousand. The estimate for the August report stands at 186 thousand. Will the indicator repeat and handily beat the estimate?

Sentiment and Levels

With the Eurozone stuck in low inflation mode, the ECB is on course to add more easing, while a September rate hike is back on the table in the US. This should push the pair lower. So, the overall sentiment is bearish on EUR/USD towards this release.

Technical levels, from top to bottom: 1.1335, 1.1230, 1.1190, 1.1140, 1.1070 and 1.10

5 Scenarios

1. Within expectations: 177K to 183K: In such a scenario, the EUR/USD is likely to rise within range, with a small chance of breaking higher.
2. Above expectations: 184K to 188K: An unexpected higher reading could push the pair below one support line.
3. Well above expectations: Above 189K: Such an outcome could push the pair lower and two or more support lines could fall as a result.
4. Below expectations: 172K to 176K: A weak reading could result in EUR/USD breaking above one resistance line.
5. Well below expectations: Below 172K. A very soft reading could result in the pair breaking above two or more resistance lines.

For more about the euro, see the EUR/USD forecast^[2].

Get the 5 most predictable currency pairs^[3]

References

1. ^{^} EUR/USD (www.forexcrunch.com)
2. ^{^} EUR/USD forecast (www.forexcrunch.com)
3. ^{^} Get the 5 most predictable currency pairs (www.forexcrunch.com)

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from Online Forex Trading Resource http://its-veso.tumblr.com/post/149791709982

EUR/USD: Trading the US Nonfarm Employment Change

US Nonfarm Employment Change measures the change in the number of newly employed people in the US, excluding workers in the farming industry. A reading which is higher than the market forecast is bullish for the dollar. Here are the details and 5 possible outcomes for EUR/USD^[1].

Published on Friday at 12:30 GMT.

Indicator Background

Job creation is one of the most important leading indicators of overall economic activity. The release of US Non-Farm Employment Change is highly anticipated by the markets, and an unexpected reading can have a substantial impact on the direction of EUR/USD.

Nonfarm Employment Change surged in the June report, climbing to 287 thousand. This is easily beat the estimate of 175 thousand. The estimate for the July report stands at 180 thousand.

Sentiment and Levels

Eurozone growth has been lukewarm and inflation remains an issue, although recent inflation numbers have shown improvement. However, the weak GDP data from the US could result in the Fed staying on the sidelines until December or even later. All in all, things could remain balanced. So, the overall sentiment is neutral on EUR/USD towards this release.

Technical levels, from top to bottom: 1.1335, 1.1230, 1.1190, 1.10, 1.0905 and 1.0825

5 Scenarios

1. Within expectations: 177K to 183K. In such a scenario, the EUR/USD is likely to rise within range, with a small chance of breaking higher.
2. Above expectations: 184K to 188K: An unexpected higher reading could push the pair below one support line.
3. Well above expectations: Above 188K: Such an outcome could push the pair lower and two or more support lines could fall as a result.
4. Below expectations: 172K to 176K: A weak reading could result in EUR/USD breaking above one resistance line.
5. Well below expectations: Below 172K. A very soft reading could result in the pair breaking above two or more resistance lines.

For more about the euro, see the EUR/USD forecast^[2].

Get the 5 most predictable currency pairs^[3]

References

1. ^{^} EUR/USD (www.forexcrunch.com)
2. ^{^} EUR/USD forecast (www.forexcrunch.com)
3. ^{^} Get the 5 most predictable currency pairs (www.forexcrunch.com)

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from Online Forex Trading Resource http://its-veso.tumblr.com/post/148440333632

EUR/USD: Trading the US Nonfarm Employment Change

US Nonfarm Employment Change measures the change in the number of newly employed people in the US, excluding workers in the farming industry. A reading which is higher than the market forecast is bullish for the dollar. Here are the details and 5 possible outcomes for EUR/USD^[1].

Published on Friday at 12:30 GMT.

Indicator Background

Job creation is one of the most important leading indicators of overall economic activity. The release of US Non-Farm Employment Change is highly anticipated by the markets, and an unexpected reading can have a substantial impact on the direction of EUR/USD.

Nonfarm Employment Change dropped in March to 215 thousand, beating the estimate of 206 thousand. The markets are expecting the downward trend to continue in the April report, with an estimate of 203 thousand.

Sentiment and Levels

The euro remains at high levels against the dollar, much to the consternation of the ECB. However, there appears little that Mario Draghi & Co. can do to stop the euro’s rise. Although the US labor market has looked very strong, a surprisingly soft ADP Nonfarm Payrolls report could point to a downward correction in employment numbers, which would send the pair to lower levels. So, the overall sentiment is neutral on EUR/USD towards this release.

Technical levels, from top to bottom: 1.1712, 1.15, 1.1460, 1.1410 and 1.1335

5 Scenarios

1. Within expectations: 200K to 206K. In such a scenario, the EUR/USD is likely to rise within range, with a small chance of breaking higher.
2. Above expectations: 207K to 211K: An unexpected higher reading could push the pair below one support line.
3. Well above expectations: Above 211K: Such an outcome could push the pair lower and two or more support lines could fall as a result.
4. Below expectations: 195K to 199K: A reading below the 200-thousand level could result in EUR/USD breaking above one resistance line.
5. Well below expectations: Below 195K. A very weak reading could result in the pair breaking above two or more resistance lines.

For more about the euro, see the EUR/USD forecast^[2].

Get the 5 most predictable currency pairs^[3]

References

1. ^{^} EUR/USD (www.forexcrunch.com)
2. ^{^} EUR/USD forecast (www.forexcrunch.com)
3. ^{^} Get the 5 most predictable currency pairs (www.forexcrunch.com)

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