It’s NFP Friday, people!
If you’re looking to trade this top-tier catalyst, check out this potential triangle breakout on USD/CHF.
But first, read up on the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- Australian retail sales fell 2.7% in July vs. projected 1.9% drop
- Chinese Caixin services PMI tumbled from 54.9 to 46.7 vs. 52.0 forecast
- Asian shares steady while dollar dips ahead of NFP release
- Eurozone final services PMI downgraded from 59.7 to 59.0
- Japanese PM Suga offers resignation on failure to contain the pandemic
Upcoming Potential Catalysts on the Economic Calendar:
- U.S. non-farm payrolls, jobless rate, and average hourly earnings at 12:30 pm GMT
- U.S. ISM services PMI at 2:00 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: USD/CHF
Who’s up for a breakout setup?
This pair formed lower highs and higher lows inside a symmetrical triangle on its 1-hour time frame, and it looks like a big move is due soon.Price is inching close to the triangle bottom where dollar bulls might be hanging out. If support holds around .9130, another bounce to the triangle top at .9180 could follow.
On the other hand, a break lower could set off a drop that’s at least the same size as the triangle pattern or roughly 100 pips.
Technical indicators seem to be hinting at a bullish move, as the 100 SMA is above the 200 SMA while Stochastic is turning higher.
Then again, the upcoming NFP report might shake things up, as another weak read could force the Fed to keep stimulus in place for longer.
Analysts are expecting to see a gain of 750K in hiring versus the earlier 943K increase, but leading indicators are giving downbeat signals. The ADP reading fell waaay short of estimates at a meager 374K gain while the ISM manufacturing PMI jobs component slipped from 52.9 to 49.0.