Today, Europe will not publish any important macroeconomic data. Thus, the market activity is shaped by expectations of the US reports.Today, the US will disclose its unemployment claims data. The number of the first-time claims is expected to drop to 2.5 million. The predicted figures are significantly lower than the results showed during the previous seven weeks. Moreover, the number of the first-time claims may hit the lowest level since the beginning of the crisis. However, taking into account massive layoffs, very soon there will be no people to dismiss. In this case, the number of the applications should slide to zero. At the same time, the amount of the continuous claims is really shocking. The fact is that people not only losing their jobs, they cannot find the new ones. Analysts suppose that in the given period, the number of continuous claims may reach a new all-time high thus beating the previous record. In other words, the US unemployment can be described as prolonged. Moreover, the economic recession has already begun. During the previous two weeks, the indicator also climbed to new record highs thus triggering the US dollar depreciation. Of course, the greenback quickly recouped its loses. Nevertheless, a local drop was logged. At the moment, there are no reasons to say that the US dollar will be able to avoid a decline.
The euro/dollar pair once again bounced off the support area of 1.0885/1.0900. The pair lost positions gained on May, 12th. Market participants focused on the levels of 1.0765/1.0785, which the quote may hit in the near future. Under the current conditions, the pair may rebound or fall even lower.
Sell positions are opened with the target at 1.0775. Deals can also be initiated, if the price consolidates below 1.0760 with the targeted level at 1.0700.
Buy positions can be initiated, if the price rebounds from the area of 1.0765/1.0785 with the target at 1.0850.
The pound/dollar pair broke the level of 1.2250 that was considered to be a low logged on April, 21st.
It is quite possible that the area of the main levels of 1.2150/1.2180 will weigh on the quote. That is why, the pair is likely to get stuck in this area. Trading recommendations depend on the market participants’ actions in the control area. If the price consolidates below 1.2150, the main trend is likely to be resumed.
Short positions can be opened below 1.2140 with the targeted level at 1.2050-1.2000.
Long positions can be initiated, if the pair jumps from the area of 1.2150/1.2180 using the levels as support. In this case, traders may enter the market above 1.2240 with the target at 1.2300.
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