Markets trade uneventfully so far this Monday, with investors still digesting the latest US employment data. The mixed report put a halt on dollar's sharp weekly decline, but is not enough to revert the negative tone of the American currency, unable to rally further at the beginning of the week.
The week starts with a light calendar, with only the US Labor Market Conditions Index for January to be released during the American session, and Chinese markets closed for most of the week amid the Lunar New Year.
View the Live chart of the EUR/USD
Technically, the EUR/USD 4 hours chat shows that the price hovered around the 1.1140/50 region ever since the day started, meeting support in a strongly bullish 20 SMA. In the same chart, the technical indicators have managed to bounce within positive territory and after correcting extreme overbought readings, suggesting the pair may recover its upward strength during the upcoming hours.
Also, the post NFP low at 1.1108 held, while the price has barely retraced the 23.6% of its latest bullish run, supporting too a new leg higher. The immediate resistance stands at 1.1165, and an upward acceleration through the level should lead to a continued advance up to 1.1210/45. Should the rally extend beyond this last, 1.1290 comes next.
Below 1.1110, on the other hand, the risk turns towards the downside, with 1.1060 and 1.1025 as the next supports and bearish targets.
Latest updates on the EUR/USD Forecast
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