EURUSD – Upside Limited, More Losses Likely

Key Highlights

• Euro was crushed this past week against the US Dollar as the latter one gained heavily.

• The US NFP report exceeded the market forecast, and registered a gain of more than 200K+ jobs.

• The most important point is the fact that the unemployment rate in the US dropped to 5%.

• Recently, the Chinese Trade Balance released by the General Administration of Customs of the People’s Republic of China posted a trade surplus of $61.64B, less than the forecast of $64.75B.

EURUSD Technical Analysis

The Euro moved sharply lower against the US Dollar, as the impressive NFP report surprised the market and helped the greenback to gain traction this past week. The EURUSD pair broke an expanding triangle pattern on the hourly chart and traded as low as 1.0704.

There is a chance of a minor correction from the current levels, which may find resistance near the 50% Fib retracement level of the last leg from the last drop from the 1.0892 high to 1.0704 low.

On the downside, a break below the last low of 1.0704 could take the pair towards the 1.0660 support area in the near term.

German Trade Balance

Today in the Euro Zone, the German Trade Balance report will be released by the Statistisches Bundesamt Deutschland. Let us see how the outcome shapes up and whether the outcome matches the forecast of €20.0B trade surplus or not. A lower than expected result might weigh on the EURUSD pair moving ahead.