EUR/USD continues to consolidate in a narrowing trading range. The price may go up or down depending on the news that is expected to come out on employment in the United States.
Possible technical scenarios:
The EUR/USD dropped in a sideways range between 1.0808 and 1.0958. If its support holds, the price recovery can be anticipated.
Fundamental drivers of volatility:
On Friday, the stats on employment in the United States will be the primary factors driving the shift in market volatility, while no news drivers are expected from the euro area.
The unemployment rate is expected to stay at 3.7% for the foreseeable future. Nonfarm payrolls in the United States are predicted to decrease by 225,000 from the previous period's increase of 339,000.
Intraday technical picture:
Judging by the situation unfolding on the 4H chart of the EUR/USD pair, we see that a falling wedge has formed in an uptrend. This typically points to a continuation of increase after the price exits it upwards. At the same time, the price may break out the resistance at 0.9580 and consolidate above it.
While the dynamics of the GBP/USD pair remained muted over the first part of the week, that might change as the week draws to a close against the backdrop of crucial data from the US.
Possible technical scenarios:
The daily chart shows that the GBP/USD pair approached the resistance of the range between 1.2601 and 1.2785. From this technical position, the pair can either turn down or continue heading toward the goal of 1.2957 in the event of a breakout and consolidation above 1.2785.
Fundamental drivers of volatility:
As no UK-related critical news is anticipated on Friday, market volatility is likely to be driven by US job statistics. Possible outcomes of this data's reception include changed technical benchmarks.
Forecasts indicate that the unemployment rate will stay steady at 3.7%. In the United States, nonfarm payroll employment is forecast to fall by 225,000 from the previous period's 339,000 gains.
Intraday technical picture:
Judging by the look of things on the 4H chart of the GBP/USD pair, the price is getting closer to the resistance at 1.2785. Which side of it the price eventually consolidates on will determine the price's subsequent direction. The news' impact, which can alter price targets, must also be taken into account.
On Thursday, as concerns over global growth prospects fuelled by aggressive monetary tightening by major central banks weighed on risk appetite, the value of the Japanese yen increased somewhat in comparison to the value of the United States dollar.
Possible technical scenarios:
In this context, the USD/JPY pair has been falling after consolidating below the support of the range between 142.79 and 144.98 and is now more likely to move toward the flat's lower boundary
Fundamental drivers of volatility:
On Friday, information on employment in the United States will be the primary factor that will drive market volatility, and the market's reaction to this data has the potential to drastically change the technical situation of the USD/JPY pair. According to projections, the unemployment rate will not change from its current level of 3.7%. The nonfarm payroll employment in the United States is expected to decline to 225 thousand, as compared with the previous period, when 339 thousand people were registered.
Intraday technical picture:
As can be seen on the 4H chart of the USD/JPY pair, the update of the week’s lows and consolidation below the low of the June 29 trading session will signal further price weakening. At the same time, the price has enough room to move toward support at 142.79.
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