Dollar Strengthens Ahead of Employment Data Release
In early October, major currency pairs are trading with mixed directions. European currencies continue to trade within narrow ranges, commodity currencies are approaching key levels, and the Japanese yen has entered a full-scale downward correction. However, the upcoming U.S. employment report for September, set to be released at the end of this trading week, may either reinforce existing trends or spark new ones.
USD/JPY
Technical analysis of the USD/JPY pair indicates the potential for continued corrective growth, as a "piercing line" pattern formed on the daily timeframe on 30 September. The price managed to update the September high at 147.20. If the 147.20147.00 range turns into support, the pair could strengthen towards 149.40149.00. A break below the 146.00145.00 range would invalidate the bullish scenario.
Key events that may influence the pairs current direction include:
- Today at 15:30 (GMT +3:00): Release of U.S. initial jobless claims data
- Today at 16:45 (GMT +3:00): U.S. Services PMI release
- Today at 17:00 (GMT +3:00): U.S. ISM Non-Manufacturing PMI release
- Tomorrow at 15:30 (GMT +3:00): Release of U.S. non-farm payroll data
USD/CAD
According to technical analysis, the USD/CAD pair may continue its upward correction after a rebound from 1.3420, where a bullish reversal pattern formed. The upward movement has now encountered a key range between 1.35401.3520. If the price consolidates above this level, a retest of the September high at 1.3600 is possible. A sharp rejection from the current levels could lead to a retest of the 1.34401.3420 range.
Key events impacting USD/CAD include:
- Today at 15:15 (GMT +3:00): Release of Canadas foreign exchange reserves
- Tomorrow at 17:00 (GMT +3:00): Release of the Ivey PMI for September in Canada
Read more: https://fxopen.com/blog/en/ru-dollar-strengthens-ahead-of-employment-data-release/
Text source: Forex Trading Blog
