On the whole, the market rather calmly reacted to the publication of the report of the United States Department of Labor, although its content did not at all coincide with the forecasts. Everyone was screaming more about the fact that the unemployment rate fell to its lowest level, almost in fifty years, from 3.7% to 3.5%, while they expected it to remain unchanged. And in theory, this should have led to a serious strengthening of the dollar, but in fact, we observed only a temporary, and insignificant, downward movement of the single European currency. The result, all the same, was a purely symbolic strengthening of the single European currency. Many were alarmed by the fact that the growth rate of average hourly wages slowed from 3.2% to 2.9%. So unemployment has become lower, but wages are also likely to decline, and as a result, total income remains the same. In addition, 136 thousand new jobs were created outside agriculture, and not 145 thousand as predicted. But this negative factor was compensated by the revision of previous results from 130 thousand to 168 thousand. It turns out that without counting 9 thousand new jobs in September, they found another 38 thousand in August. In other words, the content of the report was rather neutral, and since there was not much positive, there was no reason for the dollar to grow.
Since the content of the report of the United States Department of Labor did not bring any clarity, investors need pretty serious data to decide on the mood. Unfortunately, today we will not see them, since the macroeconomic calendar is essentially empty. Only data on consumer lending in the United States will be published, the volume of which is expected to grow by $18.2 billion, against $23.3 billion in the previous period. However, these data themselves are rarely of interest to anyone, especially since they are published quite late, when not only Asia but also Europe is already closed.
Consumer lending (US):
The EUR/USD pair failed to surprise traders on Friday, although hopes were great. The quotation practically did not show the proper fluctuation, and to be more precise, we have a horizontal move within 1.0960/1.0990. Considering what is happening in general terms, we see a distinct corrective course, from the point of variable support of 1.0880, towards the psychological mark of 1.1000, where stagnation has already formed near the level.
It is likely to assume that the lateral oscillation of 1.0960/1.0990 (1.1000) will still remain for some time, where trading inside the boundaries does not make much sense, for a set of small amplitude, but the method of trading on the breakdown can bring much more opportunities.
Concretizing all of the above into trading signals:
- Long positions, we are already considering consolidating prices above 1.1000.
- Short positions, we consider in case of price consolidation lower than 1.0960, (not a puncture shadow).
From the point of view of a comprehensive indicator analysis, we see that, amid a corrective move, the indicators' signs to a greater extent took an upward position. It is worth considering such a moment that due to the fact that there is an amplitude fluctuation, the indicators on the minute and hour periods can be volatile.
