EUR/USD Settled Below Key Support Levels07 May, 2018 by Aayush Jindal in Market Analysis
- The Euro declined heavily this past week and broke the 1.2000 support against the US Dollar.
- There is a major bearish trend line formed with resistance at 1.2010 on the 4-hour chart of EUR/USD.
- The US nonfarm payrolls in April 2018 came in at 164K, less than the forecast of 192K.
- The US unemployment rate dipped from 4.1% to 3.9%.
EURUSD Technical Analysis
The Euro came under a lot of pressure this past week and declined below the 1.2000 support against the US Dollar. The EUR/USD pair traded as low as 1.1911 before buyers appeared.
Looking at the 4-hours chart, there was a major decline initiated from the 1.2400 area. The pair seems to be under a lot of bearish pressure and it may continue to decline or consolidate losses in the near term.
It recently tested the 23.6% Fib retracement level of the last decline from the 1.2138 high to 1.1911 low. However, there are many hurdles on the upside near the 1.2000-1.2040 zone.
There is also a major bearish trend line formed with resistance at 1.2010 on the same chart. Moreover, the 50% Fib retracement level of the last decline from the 1.2138 high to 1.1911 low is close to the 1.2025 level.
Therefore, the pair will most likely face a strong selling interest near 1.2010 and 1.2025. On the downside, the 1.1920 level is a major support, followed by 1.1850.
This past Friday, the US nonfarm payrolls report for April 2018 was released by the US Department of Labor. The market was looking for a reading of around 190K, compared with the last 103K.
The actual result was on the lower side as the US NFP in April 2018 came in at 164K. However, the last reading was revised up to 135K. More importantly, the US unemployment rate dipped from 4.1% to 3.9%.
The report added:
Among the major worker groups, the unemployment rate for adult women decreased to3.5 percent in April. The jobless rates for adult men (3.7 percent), teenagers (12.9 percent), Whites (3.6 percent), Blacks (6.6 percent), Asians (2.8 percent), and Hispanics (4.8 percent) showed little or no change over the month.
Economic Releases to Watch Today
- German Factory Orders for March 2018 (MoM) – Forecast +0.7%, versus +0.3% previous.
- Swiss CPI for April 2018 (YoY) – Forecast +0.8%, versus +0.8% previous.