Investors will be watching the May jobs report closely today at 12:30 GMT, for any clues on future monetary policy as maximum employment is one the Federal Reserve’s key objectives.
Nonfarm payrolls are expected to show the U.S. economy created 189,000 jobs in May, while economists forecast the jobless rate to remain steady at 3.9%
The main focus will be on average hourly earnings as the Fed keeps an eye on wage inflation. On an annualised basis, the increase in average hourly earnings is expected to accelerate to 2.7% in May, from the prior 2.6%.
Also on Friday’s economic calendar, traders will watch the Institute of Supply Management’s manufacturing purchasing managers’ index for May, scheduled for release 14:00GMT, with a forecast of 58.3%.
On the daily chart, the price had successfully broken the ascending trend from the high of 2017 along with the resistance level to eventually reach the key resistance 95.15 to bounce back from there.
The price shaped a reversal pattern (wedge) which closed with a break beneath it.
With forming divergence in RSI, the price is expected to have a correction to the key support at 92.6 which is located the broken trend too.
On the daily chart, as we expected before, the pair had bounced from the ascending trend with an engulfing candle, along with breaking a descending one, to reach our target at the resistance zone at 0.697-0.702.
According to the Bat shaped harmonic pattern (bat), the price is expected to reach the B point at the next resistance zone 0.7155-0.7185.
The price may face a little retracement before going up to the mentioned targets.