The EUR/USD spent most of this last week in the bearish side, printing a fresh year low of 1.3366 following FOMC latest economic decision, which actually offered no surprise trimming QE for another $10B and expressing concerns over the labor market. Things however changed early Friday, as US employment figures missed expectations: the economy created 209K new jobs against 230K expected, while unemployment rate ticked up to 6.2%. Those numbers are far from signaling the economy took a step back, but investors’ expectations ahead of the news were way too high, and that’s the main reason of Friday dollar weakness.
But dollar bearish move, particularly against the EUR, is far from being a bottom, at least according to the daily chart: price stalled below 1.3440, the level that capped the upside over these last days, and around the 23.6% retracement of the bearish run from 1.3639 to mentioned low of 1.3366. In the same chart, indicators aim slightly higher from oversold levels, which support an upward corrective movement, so if price advances above 1.3440, there’s a good chance it may continue up to 1.3475/1.3500 price zone. This last is the critical area to watch, as only a daily close above this level will suggest an interim bottom was reached, looking then for a continued advance towards 1.3570/80 price zone.
On the other hand, failure to establish above 1.3500 will keep the risk to the downside, with a break below 1.3365 exposing 1.3295, November 2013 monthly low.
View Live Chart for EUR/USD
But dollar bearish move, particularly against the EUR, is far from being a bottom, at least according to the daily chart: price stalled below 1.3440, the level that capped the upside over these last days, and around the 23.6% retracement of the bearish run from 1.3639 to mentioned low of 1.3366. In the same chart, indicators aim slightly higher from oversold levels, which support an upward corrective movement, so if price advances above 1.3440, there’s a good chance it may continue up to 1.3475/1.3500 price zone. This last is the critical area to watch, as only a daily close above this level will suggest an interim bottom was reached, looking then for a continued advance towards 1.3570/80 price zone.
On the other hand, failure to establish above 1.3500 will keep the risk to the downside, with a break below 1.3365 exposing 1.3295, November 2013 monthly low.
View Live Chart for EUR/USD
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