Daily Forex Market Preview, 09/04/2018
The U.S. dollar was seen trading mixed on Friday especially after the monthly payrolls report disappointed. Data from the U.S. labor department showed that the U.S. economy added only 103k jobs during the month, missing estimates of 188k for the month.
However, payrolls for February were revised higher to 326k jobs during the month. The average hourly earnings ticked higher to rise 0.3% on the month matching estimates and pushed the annual average earnings to 2.7% in March compared to the year before. The U.S. unemployment rate was unchanged at 4.1%.
Canada also released the payrolls report which showed 32.3k jobs being added in March. Canadian unemployment rate was unchanged at 5.8% as expected.
Elsewhere, the markets were mostly stirred by the threats from President Trump as he announced that the U.S. would impose fresh tariffs on goods imported from China.
Looking ahead, the economic calendar today is relatively quiet. The German trade balance data will be coming out earlier in the day followed by the Eurozone Sentix investor confidence. Later in the day, Canada will be releasing the housing starts figures.
EURUSD 09-04-2018 Intra-day analysis
EURUSD (1.2272): The EURUSD was seen falling to test the support level at 1.2241 on Friday. Price action posted a rebound off this level and in the near term we could see a modest correction to the decline. Overall, EURUSD is likely to maintain the range within 1.2400 and 1.2241 levels. On the 4-hour chart, with price clearing above the 1.2241 level of support, we expect the next target to come in at 1.2300. While this resistance level may cap the gains in the near term, a higher low within 1.2300 and 1.2241 could confirm the upside target towards 1.2385.