The EUR/USD pair weakened to fresh multi-year lows around 1.0960 ahead of US employment figures, still heavy after ECB's QE details announcement last Thursday. The pair accelerated south after breaking below the 1.1000 level with the European opening, with no actual catalyst behind current dollar strength. Earlier today, the EZ released its GDP figures, matching expectations yearly and quarterly basis: the area grew 0.3% in the last quarter of 2014, with the annual reading printing 0.9%.
The market waits now for the US employment figures, and consensus is for a strong 235K new jobs added in February, with a lower unemployment rate of 5.6% and higher wages. Despite the 4 hours chart shows that the pair is extremely oversold, as the RSI indicator heads strongly south around 18, a reading above expected should trigger a fresh sell-off in the common currency, pointing to test 1.0920 against the greenback. If the pair falls beyond this last, next support for the day comes at 1.0870, but doors will stay open for a continued decline towards the 1.0760 level next week.
To the upside, 1.1000 comes as the immediate resistance, the level to watch if the numbers disappoint, with an extension above it pointing for a rally up to 1.1060.
View Live Chart for EUR/USD
The market waits now for the US employment figures, and consensus is for a strong 235K new jobs added in February, with a lower unemployment rate of 5.6% and higher wages. Despite the 4 hours chart shows that the pair is extremely oversold, as the RSI indicator heads strongly south around 18, a reading above expected should trigger a fresh sell-off in the common currency, pointing to test 1.0920 against the greenback. If the pair falls beyond this last, next support for the day comes at 1.0870, but doors will stay open for a continued decline towards the 1.0760 level next week.
To the upside, 1.1000 comes as the immediate resistance, the level to watch if the numbers disappoint, with an extension above it pointing for a rally up to 1.1060.
View Live Chart for EUR/USD
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