Traders anticipate the publication of the Initial Jobless Claims report tomorrow, January 14.
Initial Jobless Claims is a measure of the number of people who file for unemployment benefits for the first time during the given week.

This data is collected by the Department of Labor, and published as a weekly
report. The number of jobless claims is used as a measure of the health of
the job market, as a series of increases indicates that there are fewer
people being hired.

On a week-to-week basis, claims are quite volatile.
Usually, a move of at least 35K in claims, is required to signal a
meaningful change in job growth.

A higher than expected reading should be taken as negative/bearish for the
USD, while a lower than expected reading should be taken as positive/bullish
for the USD.
Analysts predict no change in the reading which will remain at 434.00K.

Euro Dollar

For the second day in a row, the Euro did not create any major or
technically meaningful moves. We maintained a trading range below Monday's
top 1.4555, and above the Asian session bottom for the same day 1.4452. It
seems like this trading range is getting tighter & tighter, which is a price
behavior that usually happens before large moves. The borders of this tight
area are drawn with the two small trend lines on the hourly chart which are
at 1.4531 & 1.4464. Thus, breaking any of these levels will move the Euro in
the direction of the break. If we break the resistance 1.4531 the odds of
going above 1.46 will be high, where the attractive targets 1.4625 & 1.4678
await. But if we break the support 1.4464, the Euro will fall again
targeting 1.4409 first, then 1.4331. And as it is the case with all tight
ranges, it is highly preferred not to take a bias towards any direction
before breaking the limits of the tight range.

Support:
* 1.4485: the trend line that limits the tight area from below.
* 1.4409: Fibonacci 50% for the short term.
* 1.4331: previous well known support/resistance.

Resistance:
* 1.4531: the trend line that limits the tight area from above.
* 1.4625: Nov 3rd low.
* 1.4678: Fibonacci 50% for the medium term.

USD/JPY

Exactly as we have expected, Dollar-Yen broke yesterday's support 91.70 and
successfully reached the suggested target 90.76, stopping only 5 pips below
it, before bouncing back above 91. As we can see on the attached chart, this
pair has bumped into a support that caused it to bounce more than 60 pips
until now. Reaching 90.76 is expected to provide a chance to create a
correction for the whole fall from 93.75, which will ideally target 91.87 &
92.59. But before talking about such a correction we should see a break of
short term resistance 91.33. If the price goes back to falling, and break
short term support 90.95, the down trend will continue, and will target
90.35, and later the important 89.79.

Support:
* 90.95: Fibonacci 61.8% for the short term.
* 90.35: support/resistance area on the 4-hour chart.
* 89.79: Fibonacci 61.8% for the whole rise from 87.35 to 93.75.

Resistance:
* 91.33: intraday top.
* 91.87: Fibonacci 38.2% for the whole move down from 93.75.
* 94.62: Fibonacci 61.8% for the whole move down from 93.75.

Analysis by: http://www.Forexpros.com - Written by Munther Marjifor Forexpros

Forexpros offers the most definitive Forex portal on the web. It contains industry leading market analysis, up-to-the minute news and advanced trading tools which provides brokers, traders and everyone involved in the financial market with an all-round guide to Forex.

Disclaimer: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.