All eyes will be on the US Nonfarm Payrolls tomorrow.
Why Is This Important?
The Nonfarm Payrolls track the change in the number of people employed by the US in manufacturing, construction and goods companies. It does not include farming industry employment. The US Jobs Report is an important determinant of a Fed rate hike in the upcoming decisions.
The Federal Reserve left interest rates unchanged on Wednesday. Chairman Jerome Powell indicated that no immediate need to cut interest rates. Also, the US central bank continued to highlight the strength in the labor market.
The ADP report showed the US private sector added 275K jobs during April, better than March’s 151K jobs.
US Nonfarm Payrolls is expected to see 181K jobs created after rising 196K the previous month. The Unemployment Rate is expected to stay at 3.8%. Average hourly earnings will also be significant and are expected to be 0.3% higher than the previous month's number of 0.1%. The strong employment report will point to an improving US Economy and support the US dollar.
In addition to US Jobs Report, we will focus on the Consumer Price Index from Europe tomorrow.
Technical Analysis
As long as the EUR/USD pair stays below 1.1219 on a daily basis, the selling pressure may gain more momentum and the daily support level can be found at 1.1103. On the other hand, if the price goes beyond 1.1219, we will follow 1.1285 as a key resistance level.
- Support: 1.1103 - 1.0980 - 1.0837
- Resistance: 1.1219 - 1.1285 - 1.1355
The GBP/USD pair is trading below the 1.3055 resistance level. As long as the price stays below 1.3055, on a four hourly basis, we will follow the daily support level at 1.2994. On the other hand, if the pair moves up above 1.3055, the next resistance level can be found at 1.3152.
- Support: 1.2994 - 1.2931 - 1.2871
- Resistance: 1.3055 - 1.3152 - 1.3217
The USD/JPY pair showed an upward movement from the daily support level of 111.18. In the event that the rise continues, the main resistance level can be found at 111.85. On the other hand, if the pair breaks down, 111.18, the next support level will be at 110.35.
- Support: 111.18 - 110.35 - 109.57
- Resistance: 111.85 - 112.37 - 112.98
The gold price showed an upward reaction from the major support level of 1266. As long as the yellow metal price stays above 1266, on a daily basis, the fall may be limited and we will see 1278 as a resistance level. In contrast, if the price drops below 1266, the next support level will be seen in 1251.
- Support: 1266 - 1251 - 1238
- Resistance: 1278 - 1291 - 1305