The US Jobs report that was released earlier today turned out to be lower than expected - 261K, expected 310K. Some experts even predicted 401K but even that negative result could not keep the US bulls at bay.
Despite the result, the US dollar continued on its way to dominance over major currencies marking a new low against the Euro - the pair is now trading at 1.1605. Prior to the news it was standing at 1.1655, went as high as 1.1690 and then went South to current low.
The long term bullish trend on the EUR/USD seems to be exhausted and now the effect can be felt. If the pair continues to post losses, it will break the support level at 1.1540 and then it might go lower to 1.14.
If we see the pair depreciate, it will cancel out the possibility of the pair to be one of the best performing pairs for the year.
Let's see whether it will keep depreciating.
ReplyDeleteIt's quite bearish, indeed.
ReplyDeleteGood point! I'll keep an eye on it.
ReplyDeleteIn short term the pair looks neutral-bearish, lacking directional strength.
ReplyDeleteGood post.
ReplyDelete