The U.S dollar slumped against the Euro and also extended losses against a basket of other major currencies on Wednesday, after data showed that U.S. Non-farm private employment rose less than expected in April, fueling concerns over the strength of the U.S. labor market.
In a report, payroll processing firm ADP said non-farm private employment rose by 169,000 last month, below expectations for an increase of 200,000. The economy created 175,000 jobs in March, whose figure was downwardly revised from a previously reported increase of 189,000.
The dollar also remained under pressure after the latest U.S. trade data indicated that the economy may have contracted in the first quarter.
Intra-day bias remains bullish as 21 crosses 55 EMA upward. SSRC and MACD oscillators are also signalling a continuation of bullish momentum. However the markets seems to be over-bought so we could wait for a decent retracement and buy the dips for a better risk to reward trade. Am expecting further rise to 1.1384 weekly resistance and clear break of this resistance can see price rise further to 1.1477.
Tomorrow investors would be taking a close look at USD unemployment claims.