2016 is already off to an amazing start as jobless rates rose sharply in December as initial claims for state unemployment benefits came out to 20,000 seasonally adjusted 287,000.
Despite unemployment rates continuing to fall, the December 16 rate hike and jobless claims signal a slowdown in employment growth expectations in 2016.
Meanwhile, technical analysts are at it again with their chart patterns. Here’s what your chart analysis should not be!
And finally, I haven’t done much trading over the winter holiday due to the low volumes and illiquidity. I did have a longer term trade open over on the EURUSD pair. I shorted this pair on a mix of the technical and fundamental setups involved.
Starting with the technical setup, this pair was in a range, but I shorted it slightly earlier at the 1.0920~ level from the wedge breakout. I also marked a potential supply zone at the 1.088~ area marking m y close out plan. The wedge was my main signal for a short entry. The break lower on the range was an additional perk. If price crosses above the supply zone, I would close out my short position at a much lower profit.
Furthermore, I expected a continuation of the U.S. Dollar strength given its strong employment figures. I entered my trade before seeing the news on the jobless claims. This pair reacted slightly on the negative U.S. news hence the favourable opening for the EURUSD pair.