EURUSD – Euro May Attempt To Break Higher Vs Dollar10 October, 2016 by Aayush Jindal in EURUSD, Market Analysis, Technical Analysis
EURUSD – Euro May Attempt To Break Higher Vs Dollar
- The Euro traded higher during the past few hours versus the US Dollar, and moved above 1.1150.
- There is a major bearish trend line formed on the hourly chart of the EURUSD pair, which may act as a resistance on the upside.
- This past Friday, in the US, the nonfarm payrolls was released by the US Department of Labor.
- The result was on the lower side, as there was a rise of 156K in Sep 2016, compared with the forecast of 175K.
EURUSD Technical Analysis
The Euro after trading as low as 1.1104 against the US dollar found buyers and traded higher. The EURUSD pair is now back above 1.1150, and currently looks set for more gains.
However, the upside move won’t be easy for the EURUSD pair, as there is a major bearish trend line formed on the hourly chart. Moreover, the pair is currently finding resistance near the 100 and 200 hourly simple moving averages confluence area.
The hourly RSI is above the 50 level, which means the Euro buyers are in action. So, there is a chance that they may attempt to take the pair further higher. A break above the trend line could open the doors for a move towards 1.1240.
US Nonfarm Payrolls
This past Friday, the US saw an important release, as the nonfarm payrolls report was published by the US Department of Labor. The market was expecting an increase of 172K in Sep 2016, more than the last rise of 151K. However, the result was on the lower side, as there was a rise of 156K in Sep 2016.
The US unemployment rate was forecasted to remain unchanged at 4.9% in Sep 2016, but there was a rise to 5%. Finally, the Average Hourly Earnings increased by 0.2% in Sep 2016, compared with the previous month.
The result was not as the market expected, which ignited a downside move in the US Dollar, and helped the pairs like EURUSD and GBPUSD in a recovery.
Quiet Day Today
Today, there are no major releases lined up in the US, and the markets may remain calm due to the Columbus Day. There may not be any major move, and the market might mostly consolidate in a range.