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ADP

EURUSD teases bears ahead of US ADP Employment dataEURUSD fades three-week-old recovery as it remains below a downward sloping trend line from early February, around 1.0745 by the press time. Also keeping sellers hopeful is the RSI retreat and a downside break of the 1.0690 support-turned-resistance confluence, comprising an ascending support line from May 13 and 10-DMA. That said, the bears seem approaching 23.6% Fibonacci retracement (Fibo.) of the February-May downturn, around 1.0620, becomes imminent. In a case where the pair remains pressured below 1.0620, monthly horizontal support close to 1.0470-60 appears the last defense of sellers. On the contrary, a successful break of the multi-day-old resistance line, near 1.0745, becomes necessary to recall buyers. Even so, a validation from the 38.2% Fibo. level surrounding 1.0785, as well as March’s low of 1.0805, becomes necessary to convince EURUSD bulls. However, the pair’s run-up beyond 1.0805 won’t hesitate to challenge the late April swing high around 1.0935. Overall, EURUSD bulls seem running out of steam but the bears need clear signals and are challenged by the US data’s presence as well.
Short
by MTradingGlobal
EURUSD bears eye 1.1260 key support ahead of US ADP, FOMC MinuteHaving reversed from 50-DMA, EURUSD dropped beneath the 20-DMA and made seller’s way clear for a battle with a six-week-old support line, around 1.1260. However, cautious sentiment ahead of the key data/events tests the pair’s further downside. Even so, bearish MACD signals and a steady RSI line keep sellers hopeful to revisit the 2021 bottom surrounding 1.1185. Following that, March 2020 swing lows surrounding 1.1150 and 61.8% FE of November’s low near 1.1120 will be in focus. Meanwhile, the corrective pullback will aim for the 20-DMA level near 1.1310, a break of which will direct EURUSD buyers towards the 50-DMA level close to 1.1370. Also acting as the resistance is the recent peak of 1.1388 and a four-month-old resistance line around 1.1420. It’s worth noting, however, that a clear break of 1.1420 will open doors for the pair’s run-up towards September’s low surrounding 1.1525, which in turn will dash the bearish trend.
by MTradingGlobal
Gold sellers cheer bear cross, key support break below $1,800Despite bouncing off a four-week low, gold prices are vulnerable to further downside as sustained trading below the two-month-old support line, now resistance, joins the bearish cross-over of the 200-SMA to 50-DMA. That said, 78.6% Fibonacci retracement (Fibo.) of September-November upside, near $1,755, may restrict short-term declines of the yellow metal ahead of September’s low near $1,721. It’s worth noting that a clear downside break of the $1,721 needs validation from the $1,717 level before challenging the $1,700 threshold. Meanwhile, gold traders are consolidating the previous day’s losses ahead of the key US ISM Manufacturing PMI and ADP Employment Change data, not to forget Fed Chair Powell’s testimony. Should the US catalysts join anxiety over Omicron to weigh on risk catalysts and the US dollar, gold prices can extend the latest corrective pullback towards the previous support line near $1,787. However, a five-week-old horizontal area surrounding $1,810 will be a tough nut to crack for the gold buyers afterward.
OANDA:XAUUSDShort
by MTradingGlobal
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EURUSD sellers cheer key support break before US ADP, PMIEURUSD extends the previous day’s downside break of an ascending support line from March 31 on early Thursday. In doing so, the currency pair prints the heaviest losses in over a week ahead of the key US ADP Employment Change and ISM Services PMI. Though, bullish MACD and upbeat RSI could trigger the quote’s bounce off 21-day SMA level of 1.2172, if not then April top near 1.2150 will be the next support to watch. It should, however, be noted that the pair’s south-run past-1.2150 will make it vulnerable to revisit the mid-May lows near 1.2050. It’s worth noting that the recovery moves from the current levels need strong data to support to cross the support-turned-resistance close to 1.2215. Also acting as the upside barrier is the weekly resistance line surrounding 1.2245 and the recently flashed multi-day top of 1.2265. Overall, EURUSD traders should wait for Friday’s US NFP even as the early signals suggest that the bullish momentum is fading.
by MTradingGlobal