The market has "digested" Friday's labor and unemployment reports, but the most interesting part is still to come. On Tuesday, the "Nonfarm Payrolls Annual Revision" report will be released. This is precisely the same report as Friday's, except it covers the entire year, not just one month. There's no need to say that the annual figure is much more important than the monthly one. The US labor market has been very weak over the past four months. During this period, only a little over 100,000 new jobs have been created, which is very low for the American economy. The annual Nonfarm Payrolls figure is already making market participants nervous. If the last four reports were weak, there is a high probability that on Tuesday will see a downward revision.

However, I wouldn't jump to conclusions in advance. The annual Nonfarm Payrolls report differs from the monthly one in that there's no "previous value" or "forecast." Or rather, there is a previous value (-818,000), but it doesn't tell us much since there is nothing solid to compare it to. If last year's revision resulted in nearly one million jobs, it doesn't allow us to draw any conclusions about what will happen in 2025.

Therefore, on Tuesday the market could very well see a strong figure. Essentially, the data for the last 12 months is summed, and the revision is based on that total. Given that the figures for the previous four months have already been revised down several times, there may not be a fresh reduction in the actual number of jobs created. At the same time, if yet another downward revision does happen, it would be another blow to the American currency. That would mean even fewer nonfarm jobs created than even the lowest estimates by economists.

Based on all the above, I believe that on Tuesday, demand for the US dollar could decrease even more. However, according to the current wave structure, EUR/USD and GBP/USD still have only one direction—to go up. The news backdrop would have to globally reverse for the dollar to receive the long-term support needed to start building a downward trend section. One report will not change things.

Wave Picture for EUR/USD:

Based on my analysis of EUR/USD, I conclude that the instrument continues to build an upward trend. The wave markup still entirely depends on the news background linked to Trump's decisions and US foreign policy. The targets of the trend section may stretch as far as the 1.25 area. Accordingly, I continue to consider longs with targets around 1.1875 (which corresponds to 161.8% of the Fibonacci extension) and higher. I assume that wave 4 construction is complete. Thus, now remains a good time to buy.

Wave Picture for GBP/USD:

The wave markup for GBP/USD remains unchanged. We are dealing with an impulsive upward trend section. With Trump, the markets may experience many more shocks and reversals, which could seriously affect the wave picture, but for now, the working scenario remains intact. The target for the upward trend section is now around 1.4017. At this time, I believe that the construction of corrective wave 4 is complete. Wave 2 of 5 may be either completed or nearing completion. Therefore, I advise buying with a target of 1.4017.

Key Principles of My Analysis:

1. Wave structures should be simple and clear. Complex structures are challenging to trade and often require adjustments.
2. If you are unsure about the market, it is better to stay out.
3. One can never be 100% certain of market direction. Never forget to use stop-loss orders.
4. Wave analysis can be combined with other types of analysis and trading strategies.