U.S. Jobs Report Hits Euro, Bonds And Gold

New York (Dec 6)  Non-farm payrolls for November surged to 321,000, which was the biggest monthly gain since January 2012. This positive news on the labor market weighed on the 20+ YR T-Bond ETF, the Euro ETF and the Gold SPDR. Bonds were down because this puts more pressure on the Fed to raise rates in the middle of 2015. The Euro was down because US economy is growing much faster than the European economy and demand for Dollars is outpacing demand for Euros. Gold was down because the Dollar was up and there is less demand for a safe haven.

The first chart shows the Euro ETF in a strong downtrend defined by a Raff Regression Channel. Key resistance is set at 125 for the Euro and key support is set at 23.2 for the US Dollar ETF.

EURO daily price chart 5 December 2014 category technicals

The Gold SPDR GLD has been quite volatile the last few weeks, but the overall trend has always been down and I view the bounce to 116 as a bear market rally. Chart 14 shows GLD hitting 52-week lows in September, October and early November. New lows happen in downtrends, not uptrends. The ETF bounced back to the 117 area, but is not even close to the mid October high. The Raff Regression Channel and the October high mark resistance in the 120 area. With the ETF stalling near the 62% retracement line, this is as good a spot as any for the counter trend bounce to end and the bigger downtrend to resume.

Source: StockChartsNewsLetter