Market overview for May 29 - June 2

The NFP has missed the market expectation and consequently, the greenback was quickly sold off across the board. The market consensus was for 181k jobs, but the US labor market only added a modest 138k jobs. The EUR/USD has jumped higher on the news reaching a high of 1.1284 a level not seen since the US presidential elections.

The GBP/USD has had a much moderate reaction to the NFP, but during the first day of the week, it managed to resume higher touching 1.2950. The big psychological number 1.3000 still remains the line in the sand for GBP/USD.

The USD/CHF exchange rate has resumed the bearish trend. We had a 100 pips sell-off, which has brought USD/CHF down from 0.9720 to 0.9620. Right now we’re consolidating those losses getting ready for another round of selling pressure. Only a break and close above 0.9720 can signal a reversal.

The USD/CAD was almost unchanged and had a subdued reaction to the NFP figures. USD/CAD is still trapped in a tight range, but the current price structure can still point towards a new low below 1.3385 support level. The big round number 1.3500 is still holding the upside for the time being.

The USD/JPY is leaning lower eying the big psychological number 111.00. After the NFP release the USD/JPY was quickly sold off, but we need more for the resumption of the bearish trend. The first two days of the new week has brought USD/JPY down below the big round number 110.00 which is constructive for the bearish case.

The AUD/USD like all other major currencies was quickly bought against the greenback. The AUD/USD exchange rate remains on a firm note being the strongest currency against the dollar after the NFP release. We’re approaching the big psychological number 0.7500 and a break and a daily close above it will signal that a swing low is already in place.

Gold price jumped higher on NFP as the US dollar tumbled more than 0.3%. The $1280 level is a major resistance level that lines up with a major downward trendline that connects the highs from 2011.

After an initial sell-off, the US major indices recovered and made a new all-time high at 2439. The DJIA also remains firm trading near the all-time high 21229. The bullish trend in the US equity market remains mature and we should be looking for the market to continue trading in the direction of the line of least resistance.
See also:
Weekly trading forecast November 19 - 23
Weekly trading forecast November 19 - 23
Today, 11:09
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