The number of job vacancies in the United States rose to a maximum of 10.103 million in April compared to the revised 9.745 million in March, according to the report by the U.S. Department of Labor. This is the highest level recorded in three months. The consensus forecast of economists had indicated a decrease in the indicator to 9.375 million.
Analysis of trading charts from May 31The EUR/USD exchange rate reached the level of 1.0635 during the inertial movement. This again confirms the technical signal of oversold euro in short-term timeframes.
On the other hand, the GBP/USD currency pair demonstrates a smoother cycle of fluctuations. Last week, the exchange rate slowed its decline, which led first to stagnation and then to a full-blown rebound.
Today, the macroeconomic calendar is saturated with statistical data, with the publication of business activity indices in the EU, UK, and the U.S. expected. However, since these are final indicators, the market reaction is unlikely unless they deviate from preliminary estimates.
Traders may pay particular attention to inflation data in the EU, where a slowdown from 7.0% to 6.5% is forecasted. This may provide sufficient grounds for speculators to expect a slowdown in the pace of interest rate hikes by the ECB, which, in turn, may weaken the positions of the euro.
During the U.S. session, the ADP employment report in the U.S. is expected to be published, with a forecast of a growth of 170,000 people, which is significantly lower than in April. The ADP report is often considered by traders as a leading indicator of the U.S. Department of Labor's employment report. At the same time, data on U.S. jobless claims will be released, where an increase in volume is expected.
According to forecasts, U.S. statistics may have a negative impact on dollar positions if they correspond to expectations.
Time targeting:
EU Manufacturing PMI - 08:00 UTC
UK Manufacturing PMI - 08:30 UTC
EU Inflation - 09:00 UTC
ADP Report - 12:15 UTC
U.S. Jobless Claims - 12:30 UTC
U.S. Manufacturing PMI - 13:45 UTC
EUR/USD trading plan for June 1The market still maintains a downward bias from the peak of the medium-term trend. In this regard, if the price returns to the cycle's low, a new downturn is possible, despite the disregard of technical signals of euro's oversold conditions. It is important to consider that the longer the market inertia persists, the less stable speculators become. As a result, there may be a sharp reduction in the volume of short positions, which could lead to a price reversal.
To transition from the correction phase to the recovery phase of the pound sterling's exchange rate relative to the current correction, it is necessary for the quote to stay above the level of 1.2500. However, pressure on the euro rate limits the growth of the British currency due to the positive correlation between these trading instruments. As a result, the recovery process may be postponed, and the quote may return to the current low.
The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: opening price, closing price, intraday high and low.
Horizontal levels are price coordinates, relative to which a price may stop or reverse its trajectory. In the market, these levels are called support and resistance.
Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset's price in the future.
The up/down arrows are landmarks of the possible price direction in the future.