Article by: ETO Markets

There were some indications that the US economy is slowing down in Friday's US employment report. The nonfarm payroll increased by 315K in March to 175K in April, which was less than the 243K forecast. With October 2023, this was the lowest gain recorded. In April, the Average Hourly Earnings YoY decreased by 3.9%, while the Unemployment Rate increased slightly to 3.9%. Ultimately, the ISM Services PMI dropped below the market consensus of 52.0, reaching 49.4 in April from 51.4 in March, indicating contractionary territory.

The daily chart indicates that around $… , the 23.6% Fibonacci retracement of the rally from mid-February, sellers resisted advances for the second day in a row. The 20-SMA on the same chart stays flat just above the indicated level, but the lengthier SMAs continue to slope upward well below the current price. Ultimately, the risk was skewed to the downside as technical indicators maintained within negative levels with inconsistent firmness. The next support awaits around $...