US Economic Indicators Fail to Move the Dial The US Jobs Report failed to spur a breakout afternoon session despite a further tightening in the US lab
US Economic Indicators Fail to Move the Dial
The US Jobs Report failed to spur a breakout afternoon session despite a further tightening in the US labor market.
Nonfarm payrolls increased by 236k v a forecasted 239k, with average hourly earnings up 4.2% year-over-year versus 4.6% in February. However, the US unemployment rate fell from 3.6% to 3.5% despite a rise in the participation rate from 62.5% to 62.6%.
The numbers supported a more hawkish Fed and raised the prospects of a May interest rate hike.
According to the CEM FedWatch Tool, the probability of a 25-basis point interest rate hike jumped from 49.2% to 67.0%. The stats supported FOMC member James Bullard’s more hawkish stance.
The Day Ahead
Input Output HK (IOHK) updates will remain the focal point. However, a lack of network updates should leave the broader crypto market to influence.
US regulatory and lawmaker activity will draw interest, with investors needing to track Binance and Coinbase (COIN)-related news.
ADA Price Action
This morning, ADA was up 0.78% to $0.387. A mixed start to the day saw ADA slip to an early low of $0.381 before rising to a high of $0.389.
Technical Indicators
ADA has to avoid the $0.382 pivot to target the First Major Resistance Level (R1) at $0.387. A move through the Friday high of $0.385 would support a bullish session. However, Cardano network updates and the broader crypto market would need to provide support.
In case of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.391. The Third Major Resistance Level (R3) sits at $0.400.
A fall through the pivot ($0.382) would bring the First Major Support Level (S1) at $0.378 into play. However, barring another extended broad-based crypto sell-off, ADA should avoid sub-$0.375 and the Second Major Support Level (S2) at $0.373. The Third Major Support Level (S3) sits at $0.364.
Today, the EMAs and the 4-hourly candlestick chart (below) sent bullish signals.
ADA sat above the 50-day EMA, currently at $0.384. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.
Avoiding the 50-day EMA ($0.384) would support a breakout from R1 ($0.387) to give the bulls a run at R2 (0.391). However, a fall through the 50-day EMA ($0.384) would bring S1 ($0.378) and the 100-day EMA ($0.377) into view. A fall through the 50-day EMA would send a bearish signal.
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