American employment update, projections

On Friday the US Department of Labor will release the current unemployment rate. The currently unemployed workforce in the US is estimated to be 6.3% for the month of February. In other words, the measure would not project changes in the rate, since for the month of January the result was the same.

A higher than expected result could be negative for the dollar. Along the same lines, the non-farm payroll employment change will be published. Projections show that it would reach 185K and this would imply greater job creation.

The new applications for Initial Jobless Claims, registered in the last month a greater volatility. Although the data published weekly showed an upward trend at the beginning of February, in the last two weeks this trend was reversed, maintaining some stability with a drop from 841K to 730K and from 730K to 745K respectively.

If non-farm employment change is positive and the unemployment rate remains stable, it will be supported by the downward trend in applications for unemployment benefits and it will be a positive scenario for the dollar. Otherwise, the scenario will be negative for the currency.

Projected prices

EURUSD, buy above 1.2050. Below 1.2050 is a sell scenario.

GBPUSD, buy at 1.3960, on the other hand if it is below 1.3920, 1.3930 is a sell scenario for the GBPUSD.

USDCAD, buy strategy remains above 1.2660, 1.2670, below 1.2630 is a sell scenario.