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EUR/USD above 1.0950

IronFX UUIIFXBR
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EURUSD raced higher on Friday following the weak US employment report, breaking above the resistance (now turned into support) line of 1.0950 (S1). The advance was halted few pips below our resistance of 1.1045 (R1) and the black line that acted as a support line during the 13th – 26th of March advance. Despite the disappointing nonfarm payrolls figure, the failure of bulls to push the price above the 1.1045 (R1) resistance level make me believe that the next wave could be to the downside, perhaps for another test of 1.0950 (S1). A break below that line could push the price even lower towards our next support of 1.0865 (S2). Our short-term momentum signs support the notion that the next wave is more likely to be down. The RSI found resistance at its 70 line, while the MACD seems to have topped and is turning down. In the bigger picture, the overall trend is still negative. EURUSD is printing lower peaks and lower troughs below both the 50- and the 200-day moving averages.

• Support: 1.0950 (S1), 1.0865 (S2), 1.0800 (S3).

• Resistance: 1.1045 (R1), 1.1165 (R2), 1.1250 (R3) .

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