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EUR/USD waits for the US employment data

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EURUSD raced higher on Thursday, breaking above the resistance (now turned into support) line of 1.0800 (S1), but the advance was halted below our next resistance. Despite yesterday’s advance, the possibility for a lower high still exists. Today we get the US employment report for March. A strong report could give sellers a reason to take advantage of yesterday’s climb and shoot the rate down, perhaps even back below the 1.0800 (S1) barrier. The RSI edged above its 50 line, while the MACD, already above its trigger, obtained a positive sign and confirmed Thursday’s positive momentum. In any case, I still believe that the overall trend is negative. EURUSD is printing lower peaks and lower troughs below both the 50- and the 200-day moving averages. I would treat 13th – 26th of March recovery as a corrective move and I would expect the bears to eventually take control and drive the battle lower.

• Support: 1.0800 (S1), 1.0700 (S2), 1.0610 (S3).

• Resistance: 1.0950 (R1), 1.1045 (R2), 1.1165 (R3).

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