The latest U.S. job openings data, which fell to the lowest level since March 2021 at 8.73 million, provides a preliminary glimpse ahead of Friday’s crucial Non-Farm Payrolls (NFP) report. Despite the downbeat jobs data, the US Dollar was supported by better-than-expected PMI readings, which pointed to a resilient US economy. However, the weakening employment data failed to catalyze a rally in U.S. equity markets, which remain near recent highs. In the cryptocurrency space, bitcoin (BTC) continues to build on its upward momentum, fueled by optimism surrounding the potential approval of a spot BTC exchange traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Bitcoin, the most valuable cryptocurrency, has surged more than 160% this year.
Dollar Index, H4
The U.S. dollar strengthens to a two-month high, fueled by conflicting economic data that paints a mixed picture of the nation’s economic health. With JOLTS Job Openings signaling a cooling labor market and ISM Services PMI beating expectations, investors navigate through the uncertainty, closely watching indicators such as Nonfarm Payrolls and the US Unemployment Rate for clearer market insights.
The Dollar Index is trading higher and is currently testing resistance. However, the MACD is showing diminishing bullish momentum while the RSI is at 65, suggesting that the index may experience a technical correction as the RSI has entered the overbought territory.
Resistance level: 104.05, 104.55.
Support: 103.25, 102.50.
GBP/USD, H4
The British Pound, as represented by the Cable, has shown resilience in the face of increasing downward pressure, especially with the recent gains in the US Dollar. The U.S. dollar has strengthened despite a weakening labor market, highlighted by U.S. job openings data falling to its lowest level since March 2021. This trend is also supported by better-than-expected U.S. Purchasing Managers’ Index (PMI) readings, signaling the robustness of the U.S. economy. Market attention is now focused on Friday’s Non-Farm Payrolls (NFP) report, which is expected to provide insight into the Federal Reserve’s future monetary policy moves.
The Cable has broken below the uptrend reference line, suggesting that the Cable may enter a bearish trend. The RSI is approaching the oversold territory while the MACD has dropped below the zero line, indicating that a bearish momentum is forming.
Resistance level: 1.2631 1.2729.
Support: 1.2528, 1.2437.
EUR/USD, H4
The EUR/USD continues its bearish trend, falling for the fifth day in a row, as the greenback continues to strengthen. The dollar, which is bouncing off its recent lows, is being supported by positive Purchasing Managers’ Index (PMI) readings. Euro traders are closely watching Thursday’s Euro-Zone GDP data for clues on the strength of the Euro, hoping for a potential technical rebound in the currency pair.
The EUR/USD is trading in a strong bearish momentum, and has fallen for 5 consecutive sessions. The MACD continues to fall while the RSI is floating in the oversold territory, indicating that the bearish momentum is strong.
