Last Tuesday, the Australian dollar experienced its steepest drop of the year, falling by 1.18%, following higher-than-expected US inflation figures, which boosted the US dollar. However, the Aussie has since rebounded and is now trading at a two-week high against the US dollar. Investors are...
USD: Initial Claims Data Incoming
2023-12-20 • Updated
The COVID-19 pandemic led to a substantial labor force transformation in the U.S., marked by 'The Great Reshuffle.' Over 50 million workers resigned in 2022, continuing the trend from 2021, but by August 2023, resignations tapered to 30.5 million. This reshuffling trend indicates a quest for better work-life balance, higher compensation, and a robust company culture. November's unemployment rate slightly dropped to 3.7%, with job gains surpassing expectations at 199,000, led by health care, government, and manufacturing sectors recovering from the United Auto Workers strike. The U.S. Chamber of Commerce is closely monitoring industry-specific trends, providing valuable insights for businesses and policymakers. Weekly jobless claims remained steady, with the insured unemployment rate at 1.3%. Notable state variations include New Jersey and California which have the highest insured unemployment rates. As the labor market adapts, businesses and policymakers are keenly observing these indicators to navigate changing workforce dynamics and economic conditions.
GBPUSD - H4 Timeframe
GBPUSD as seen from the attached chart above has been rejected off the rally-base-drop supply zone and seems to be aiming for the confluence region of the demand zone, moving average, and trendline support. In this situation, my sentiment remains bearish, until a proper reaction is observed from the confluence region as stated.
EURUSD - H4 Timeframe
EURUSD, after bouncing off the supply zone, is at the moment facing another bout of rejection from the trendline resistance. The current state of the price action is a consolidation between the two trendlines. A cautionary approach to this trade idea would be to wait for a clear break below the trendline support, whilst an aggressive approach would be to use the recent high as the stop-loss price.
USDCHF - H4 Timeframe
As for USDCHF, price seems to be on the verge of a clean rejection from the demand zone as projected based on the pin-bar candlestick formation. I’m personally not exceedingly thrilled about this move though, since it does not have as many confluences as I’d prefer to be able to work with. In the meantime, however, I’ll keep my fingers crossed, with a tentative bullish sentiment.
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
Commerzbank's analysis suggests a brighter outlook for the New Zealand Dollar (NZD) in the coming months despite recent downward pressure. Factors like broader U.S. Dollar strength and domestic issues have kept the NZD below last year's highs. However, robust labor markets in both New Zealand and Australia and an expected...
What causes the yen to fall, and how does it behave against the USD, EUR, and AUD
Intraday and swing scenarios based on price action and volume profile.
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.