Intraday Forex Friday, September 3 (EURUSD, USDJPY, etc) Dollar sank as Fed officials began suggesting the virus’ spread could delay policy tightening


Hi everyone. This observation is made around 5:40 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Asian equity markets continued to trade cautiously on Friday following the recent disappointing Asian economic indicators and the fallout from the surging Delta variant of the coronavirus in the region that continued to weigh on market sentiment.
The dollar meanwhile sank ahead of a crucial U.S. jobs report that could spur the Federal Reserve to an earlier tapering of stimulus. The dollar retreated as Fed officials began suggesting the virus’ spread could delay policy tightening. The U.S. central bank has made a labour market recovery a condition for paring pandemic-era asset purchases.

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  • The euro traded at $1.18762, hovered just below $1.18841 it touched earlier today, the highest since Aug. 4.​
  • The euro was supported on signs of faster producer prices pressures in the Eurozone, which is hawkish for ECB policy.​
  • Markets start to react to the potential for more sustained Eurozone inflation and reduced stimulus from the ECB. On Wednesday, ECB President Christine Lagarde said the euro zone economy was recovering and only needed "surgical" support targeted at sectors that still struggle.​
  • EUR/USD bulls burst into critical resistance ahead of NFP. The U.S. central bank has made a labour market recovery a condition for paring pandemic-era asset purchases. A weaker-than-expected reading may aid the dollar.​
  • Resistance is at the fresh September high around the 1.1887, a level that also held the pair back in early August. The next noteworthy cap will be at 1.1904, around July's high point.​
  • Support is at 1.1833, which provided support a month ago, followed next at 1.1816.​
Important Levels to Watch for:​
  • Resistance line of 1.18876 and 1.19044.​
  • Support line of 1.18331 and 1.18162.

  • The dollar traded 0.12% higher at 110.029 yen and is headed for its third weekly gains. The greenback opened higher against the Japanese yen on Friday ahead of the U.S. employment report which is scheduled to be released today.​
  • The U.S. non-farm payroll data is the most important indicator of the economic situation in the U.S., adding that the market expects some 750,000 new jobs to have been created over the last month. If the unemployment rate comes in below expectations, this could cause the U.S. central bank to withdraw its financial stimulus sooner than expected, which could, in turn, push the dollar higher.​
  • The rally in Japan’s Nikkei Index to a 1-1/2 month high meanwhile curbed the safe-haven demand for the yen.​
  • Adding weight to the Japanese yen, Japanese Prime Minister Yoshihide Suga reportedly will step down, Kyodo News reported on Friday, and party sources said he would not run in a ruling party leader race in September, setting the stage for his replacement after just one year in office.​
  • The USD/JPY pair has failed to move beyond the tight range that has lasted for the past two months.​
  • A trade through 110.225 will possibly signal a resumption of the uptrend, given it unable to break the resistance in multiple occasion before, which then followed by the rally around the 110.470 on Wednesday. A move through 109.735 will change the main trend to down.​
Important Levels to Watch for Today:​
  • Resistance line of 110.225 and 110.470.​
  • Support line of 109.735 and 109.490.​
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