Important levels for today's US nonfarm payrolls and beyond
The US nonfarm payrolls release typically causes significant market action. Let’s look at the charts for some popular markets to pick out the levels technical traders should be keen to watch. For each of the markets below the charts suggest key support and resistance levels which may influence your trading decisions.
The E-mini Dow Jones shows resistance at 17590/599. Watch for a high for the day here but traders going short would need stops above 17640. A break higher could target quite strong resistance at 17690/699. According to the chart, traders going short here would need stops above 17735.
We’ve also got important support at 17410/400 again today. Traders going long here would need stops below 17380, and be ready to sell a break below to target support at 17290/280.
With the E-mini Nasdaq the chart shows resistance at 4635/40. Watch for a high for the day but shorts would need stops above 4650 to target 4660 then resistance at 4674/78. Traders going short would need stops above 4688. To the downside 4545/42 looks like the last line of defence for bulls today.
The E-mini S&P shows strong resistance at 2064/65. Traders going short would need stops above 2070. Beyond here there’s further resistance at 2080/81, while the chart shows good support at 2040/39. We are oversold in the short term but traders going long would need stops below 2034, and be ready to sell a break below to target 2022/21 for some profit-taking. There might then be a further buying opportunity at 2016/15, with stops required below 2009.
With the AUD/USD pair we find support at 7285/80, which means that traders going long would need stops below 7265. A break lower would see 7280/85 act as resistance to target a further buying opportunity at 7232/28, with stops required below 7210.
The first resistance we see is at 7335/40. Any movement above this level is more positive and targets 7361 then 7377/82. The latter is quite strong resistance in overbought conditions and therefore could see a high for the day.
The GBP/USD chart shows trendline resistance at 1.5195/99. This is probably the main challenge for bulls today but traders going short would need stops above 1.5230. There could be a buying opportunity at 1.5063/58, with a stop below 1.5030, while further losses would target support at 1.4999/95.
Gold shows first resistance at 1063/64 but traders going short would need stops above 1068. On a break higher you could look for 1071/72 and then the next target and potential selling opportunity at 1079/80. The first support on the chart is at 1053/52 but any movement below this level targets 1048 before 1046/45 lows.
Finally, the USD/JPY chart shows first resistance at 122.80/85, which is the main challenge for bulls today. Traders going short would need stops above 123.00. A break higher targets 123.15 but if we continue higher look out for 123.35/39.
We’ve got important support in the USD/JPY chart at 122.35/30. This is the key to downside direction today. A break below 122.10 should trigger stops on long positions however and act as a sell signal to target minor support at 121.98/95. Below here we find 100-day moving average support at 121.75/71, which is where traders going short may choose to take a profit.
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