EUR/USD Current Price: 1.1916

  • US employment data surprised on the upside, as the country added 379K jobs in February.
  • The US Senate passed the American Rescue Plan Act with some changes to the House’s bill.
  • EUR/USD is trading near a critical mid-term support level and poised to break it.

The EUR/USD pair fell to 1.1892 on Friday, a fresh 2021 low, as an already strong American dollar got a boost from a surprise on the US employment side. The country published the Nonfarm Payroll report, which added 379K new jobs in February, much better than anticipated. The unemployment rate contracted to 6.2%, better than the 6.3% expected. The encouraging news also underpinned equities, while US Treasury yields reached fresh YTD peaks. The greenback maintained its strength heading into the weekly close, settling just above the 1.1900 threshold.

On Saturday, the US Senate passed the $1.9 trillion stimulus package, although some changes were introduced regarding the increase of the minimum wage to $15 per hour and the number of people who will qualify for a $1,400 stimulus payment. The final vote was 50-49, with all Democrats voting in favor of the bill and all Republicans voting against it. The bill, called American Rescue Plan Act, now moved back to the House, where it will be voted on Tuesday.

A stimulus injection usually boosts equities to the detriment of the greenback. However, the dollar may retain its strength on Monday, as the stimulus package has been mostly priced-in, while expectations of higher inflation will likely maintain government debt yields up. The US won’t publish macroeconomic data on Monday, while the EU will release the March Sentix Investor Confidence Index, foreseen at 1 from -0.2 in the previous month.

EUR/USD short-term technical outlook

The EUR/USD pair neared the 61.8% retracement of the November/January rally at 1.1885, the immediate support. In the daily chart, the pair is poised to extend its decline, as indicators maintain their downward slopes near oversold readings. The pair has failed to recover beyond a directionless 20 SMA and broke below its 100 SMA, now trading well below them. In the 4-hour chart, the 20 SMA heads firmly lower below the longer ones, all of them above the current level. Technical indicators bounced just modestly, holding on to extreme oversold levels.

Support levels: 1.1885 1.1840 1.1790

Resistance levels: 1.1970 1.2020 1.2060

View Live Chart for the EUR/USD

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD struggles around 1.17 in aftermath of German elections

EUR/USD is trading around 1.17, struggling to rise amid the close German elections. The safe-haven dollar dropped earlier as the Evergrande crisis eased. US Durable Goods Orders and a speech by the ECB's Lagarde are eyed.


GBP/USD rises toward 1.37 as upbeat mood outweigh petrol crisis

GBP/USD is trading close to 1.37, benefiting from the upbeat market mood and last week's BOE hawkishness. Brexit-related shortages of petrol in the UK hurt sterling earlier. 


XAU/USD eyes $1767 critical supply zone

Gold is easing off the higher levels, as the risk-on market environment amid ebbing China Evergrande fears and US stimulus optimism dulls the safe-haven appeal of the bright metal.

Gold News

Huobi to stop servicing Chinese users as China vows strict crackdown on crypto

A few months after the cryptocurrency mining ban in China, the country issued another update last week, reiterating that digital assets are banned and crypto exchanges are prohibited.

Read more

US Durable Goods Orders August: Retail Sales have led the way

The US consumer belied predictions that a slowing economy would cut into Retail Sales in August. Instead of falling 0.8% as forecast, sales jumped 0.7%. Sales outside of the production crippled auto sector were even stronger.

Read more