Friday, 3 June 2016

Lowest Index of Non-farm Employment Changes in Five Years And Dollar

EUR/USD 1-hour chart, source: forexfactory.com
 The powerful index, U.S. non-farm employment changes recorded lowest in five years at 1200(GMT), announcing increase of 38,000. The market consensus was increase of 160 thousands. The bad result than market consensus affected the currency pair EUR/USD strongly. In the pair, Greenback plunged and Euro surged. Non-farm Index is one of the most effective events on foreign exchange market and it stimulated the momentum in the market.

And the other index of U.S. unemployment rate recorded 4.7 percent, lower than that of expectation. Participants forecasted 4.9 percent.

And I acknowledge my analysis was failed. I expected the weak Euro against U.S. Dollar by the double-tops pattern in one-hour chart and Euro is supported at 1.11 marked the bottom last month.

EUR/USD 4-hour chart, source: forexfactory.com
The moment of non-farm index spoken, Euro surged high. Not rising but also breaking through the downward line in a breath. By the experience, it may not return though the adjustment. If it keeps the downward trend, it may be step down inch by inch.

We need to watch the direction of greenback now. Since the global finance crisis, this bad news has provoked the strong Dollar. Participants concluded that only Dollar is believed. If such a result is announced, it was natural not Dollar's decline but Euro's diving.



Now we need to consider the another opportunity not just Dollar Long at unexpected economic index.

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