U.S. Dollar Poised For Further Gains
MaiMarFX | Oct 04, 2021 04:28AM ET
We have entered the year's final quarter, and following last month when global stocks posted their worst performance since March 2020, the fourth quarter could be the most uncertain environment of 2021.
One of the market's main concerns is elevated inflation, and after Friday's PCE report for August came in higher-than-expected, markets could be increasing Federal Reserve rate hike bets.
This week, all eyes turn to the US Nonfarm payrolls report on Friday. Economists expect a job gain of 470k in September, while hourly earnings are expected to come in hotter-than expected at 4.6 percent YoY from 4.3 percent prior.
If these forecasts turn out to be correct, the US dollar could surge higher. A materially lower outcome, however, could derail the Fed from its less-dovish policy path.
Before coming to Friday's payrolls report, we will keep tabs on the technical picture.
h2 EUR/USD Technical Outlook/h2We focus on the 1.1580-support on the downside in short-term time frames and the 1.1620-resistance on the upside for EUR/USD. If the euro drops below 1.1580, we anticipate further losses with a next bearish target at 1.15. If the euro, however, climbs above 1.1620, we could see a test of 1.1660.
As far as GBP/USD is concerned, if the pair remains below 1.36, we expect further losses towards 1.3350.
Friday's dip below the crucial 15000-mark proved short-lived for DAX – at least until today. As long as the index fluctuates below 15650, we favor bearish movements with a next lower target at 14900. A break below 14800 could generate an even stronger sell signal towards 14400. For a bullish breakout on the other side, we would need to see prices above 15650.
Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.
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