EUR/USD Outlook: Euro falls to two-week low and risks further weakness after robust NFP data

Slobodan Drvenica Windsor Brokers

EURUSD

The Euro fell to the lowest levels in two weeks after robust US NFP data showed stronger than expected rise in June (224K vs 160K f/c and downward revised May result to 72K from 75K). Strong jobs data inflated dollar, despite lower than expected earnings (0.2% vs 0.3% f/c) as expectations for 0.5% rate Fed rate cut in July dropped significantly after data. Fresh weakness found footstep at key supports at 1.1232/29 (55DMA/Fibo 61.8% of 1.1116/1.1412 ascend, but risk of further acceleration lower on break here exists, as Euro's sentiment soured as larger bears off 1.1412 top extended after three-day consolidation above daily cloud top. Sustained break lower would open way towards next key supports at 1.1180 zone (18 June trough/daily cloud base). The pair is also on track for the biggest weekly loss since the first week of March, with formation of Evening Doji Star reversal pattern on weekly chart, adding to negative outlook.

Res: 1.1259; 1.1268; 1.1297; 1.1311
Sup: 1.1225; 1.1181; 1.1160; 1.1116

Interested in EURUSD technicals? Check out the key levels

1. R3 1.1319
2. R2 1.1308
3. R1 1.1296
PP 1.1284
1. S1 1.1272
2. S2 1.1261
3. S3 1.1249

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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