Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Greenback Remains Weak

By Dmitriy GurkovskiyForexSep 06, 2021 13:15
uk.investing.com/analysis/greenback-remains-weak-200495713
Greenback Remains Weak
By Dmitriy Gurkovskiy   |  Sep 06, 2021 13:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The major currency pair is starting a new September week with a slight correction and trading close to 1.1870. However, strategically, the USD remains weak.
 
The Unemployment Rate in the US dropped to 5.2% in August, the same as expected, after being 5.4% in the previous month. The Average Hourly Earnings added 0.6% m/m after expanding by 0.4% m/m. And that was all for the good news.
 
The Nonfarm Employment Change showed only 235K, which is significantly worse than the expected reading of 720K. The July reading was revised upwards and showed 1.053M. This was the reason why investors turned their back on the “greenback” once again.
 
Market players got upset: slow growth of the employment sector may result in a similar speed of the economic recovery.
 
In the H4 chart, after breaking 1.1840 to the upside and finishing the ascending structure with the short term target at 1.1906, EUR/USD is forming the first correctional wave to the downside with the closest target at 1.1840 and may later grow to reach 1.1875, thus forming a wide consolidation range between the two latter levels. If the price breaks this range to the upside, the market may resume trading upwards to reach 11938; if to the downside – continue the correction towards 1.1818. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line has left the histogram area at the indicator’s highs, which may hint at a correction. The line is expected to fall towards 0 and then resume growing to return to the highs.
 

eurusd
eurusd

 
As we can see in the H1 chart, after forming a narrow consolidation range around 1.1843 last Friday and then breaking it to the upside, EUR/USD has extended the third ascending wave to complete it at 1.1906; right now, it is correcting to return to 1.1845 and test it from above. At the moment, the pair is breaking 1.1875 and forming a downside continuation pattern. The target of the correction at 1.1850. After that, the instrument may start another growth to test 1.1875 from below and then resume falling towards 1.1843. From the technical point of view, this scenario is confirmed by the Stochastic Oscillator: after breaking 50 to the downside, its signal line is steadily moving towards 20, which indicates a further correction on the price chart.
 
eurusd
eurusd


By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
 
Disclaimer
Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Greenback Remains Weak
 

Related Articles

Marios Krausse
EUR/USD: On Its Way Toward 1.17? By Marios Krausse - Oct 25, 2021

The U.S. dollar was virtually unchanged last Friday after Federal Reserve Chair Jerome Powell sounded a note of heightened concern over high inflation, while making clear that the...

Greenback Remains Weak

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email