A few days after the publication of the NFP report, traders and analysts seem to be somewhat cautious. Although the report itself was a mixed package of good and bad news, there is confidence that September’s nonfarm payroll is strong enough to support rate hikes.

Earnings grew by a good 0.5% in the month, which compared to the previous year represents a 2.9% growth, the greatest and most significant gain since December 2016. Overall, the greenback is not appreciating, with the US economy losing 33,000 jobs in September.

Technical Outlook

Friday marked the 20th day in the greenback’s daily cycle, throwing the American currency in an area of daily lows. With a break below 93.60 and strong potential to follow a daily swing high, the dollar closed above the upper daily cycle band on the NFP day, remaining in its daily uptrend.

Forming a weekly swing low & amp and closing above the 10 week MA last week, the USD confirmed the bulls assumption, closing above the lower weekly cycle band and confirming that week 31 accommodated the ICL. Overall, the greenback continues to follow a downtrend.

NFP day was also day 32 in the daily equity cycle, placing stocks in a daily cycle low area too. Breaking below 2540.02, with the potential to form a daily swing high, stocks closed above the upper daily cycle band on Friday, indicating an ascending trend.

Stocks printed a new high in October, technical analysts say. However, they suggest that the earliest stocks will experience another monthly high will be in November. The positive movement however holds potential for a break in the trend line, confirming a yearly cycle decline.

Monday post the NFP report release, the EUR/USD pair seems to have hit a bullish reversal point, with a bearish breakout below the support line, at 23.6%.

There could be place for a price drop towards 38.2%, with the potential of resistance.

GBP/USD similarly seems to be following a downtrend, with the potential of a correction.

USD/JPY seems to be trending sideways, with a potential for retracement followed by a correction.

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