The US dollar plunges 2.5% on Friday to hit six-week lows at 1.3470. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• The US dollar plunges 2.5% on Friday to hit six-week lows at 1.3470.
• A mixed NFP report sends the greenback tumbling.
• USDCAD is testing the neckline of a potential H&S formation.

The pair currently trades last at 1.3509.

The previous day high was 1.3808 while the previous day low was 1.3683. The daily 38.2% Fib levels comes at 1.376, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3731, expected to provide resistance.

The US dollar is about to close its worst daily performance in some months with a nearly 1.8% sell-off. The pair has extended its reversal from Thursday’s high at 1.3800 to levels below 1.3500 for the first time since late September.

The US Non-Farm Payrolls report has shown a 261K increase in October, beating expectations of 200K, and September’s figures have been revised up to 315K, from the previously estimated 4 K.

The unemployment rate, however, has risen to 3.7% from 3.5% in September, above the consensus 3.6%, while hourly earnings increased 4,7% in October from 5% in September. These figures suggest that labor market conditions might be easing, which has tamed expectations of further aggressive rate hikes by the Fed.

The US dollar, which had been surging since Wednesday, after US Fed President, Jeremy Powell, reiterated the need for further monetary tightening, dropped like a stone on Friday on the first signs that the bank’s monetary policy could be starting to take effect.

The daily chart shows the pair reaching the area where the neckline of a Head And Shoulders formation meets the 50-day SMA, at 1.3500.

A clear breach of that area would activate the H&S pattern, and could push the pair towards 1.3200 (September 1 and 7 highs and the100-day SMA) and then probably the 1.3000 psychological level.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.3509 at the time of writing. Pair opened at 1.3746 and is trading with a change of -1.72 % .

The pair is trading below its 20 Daily moving average @ 1.3707, above its 50 Daily moving average @ 1.3486 , above its 100 Daily moving average @ 1.3201 and above its 200 Daily moving average @ 1.2958

The previous day high was 1.3808 while the previous day low was 1.3683. The daily 38.2% Fib levels comes at 1.376, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3731, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3683, 1.362, 1.3557
• Pivot resistance is noted at 1.3809, 1.3871, 1.3934

[/s2If]
Join Our Telegram Group