On Friday the euro/dollar rate dropped by 160 points following the publication of strong data on the American labor market. The NFP data exceeded market expectations and increased the probability of the US Fed increasing the rates in June this year.
In contrast with the forecasted 234,000 and the previous year’s value of 329,000, the quantity of new labor capacity in the US in January was 257,000. November’s indicator was reassessed from 353,000 to 423,000, and December’s from 252,000 to 329,000. The overall recalculation amounted to +147,000. The level of unemployment rose by 0.1% to 5.7%. The index for US average hourly earnings showed a 0.5% January increase (forecasted: 0.3%, previous year’s value: -0.2%).
Today is Monday. The basic scenario is going against Friday’s movement. I think that a correction in the form of a triple figure will be formed. From the opening of the Asian trading session, the euro/dollar updated a new minimum for its last quotes, trading at 1.1336. The price will meet with the LB line at the 1.1360 level as the evening closes in. If the euro starts rising straight away when the European market opens, the level will have to rise up to 1.1380. The LB passes through it on the European session.