Key Highlights
- EUR/USD rallied above the 1.1350 and 1.1400 resistance levels.
- It is currently correcting lower, but remains supported above 1.1250.
- The US nonfarm payrolls jumped 273K in Feb 2020, more than the 175K forecast.
- The Euro Zone Sentix Investor Confidence could decline from 5.2 to -5.0 in March 2020.
EUR/USD Technical Analysis
The Euro gained bullish momentum above the 1.1200 and 1.1350 resistance levels against the US Dollar. EUR/USD even jumped above the 1.1400 level and it is currently correcting lower.
Looking at the 4-hours chart, the pair traded as high as 1.1494 and settled well both the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair is currently correcting lower from the 1.1354 high. It tested the 23.6% Fib retracement level of the upward move from the 1.1033 low to 1.1494 high.
However, there are many supports on the downside, starting with 1.1300. The 50% Fib retracement level of the upward move from the 1.1033 low to 1.1354 high is near the 1.1295 level to provide support.
There is also a connecting bullish trend line in place with support near 1.1250 on the same chart. Therefore, dips are likely to remain well supported near the 1.1250 level in the near term.
Fundamentally, the US nonfarm payrolls report for Feb 2020 was released by the US Bureau of Labor Statistics. The market was looking for a 175K rise in the NFP, less than the last 225K.
The actual result was well above the market forecast, as the US nonfarm payrolls increased 273K. Moreover, the last reading was revised up from 225K to 275K.
The report added:
Both the unemployment rate, at 3.5 percent, and the number of unemployed persons, at 5.8 million, changed little in February. The unemployment rate has been either 3.5 percent or 3.6 percent for the past 6 months.
Overall, EUR/USD might correct lower, but it is likely to find support near 1.1250. Besides, GBP/USD surged above the 1.3000 resistance and it is now showing positive signs.
Upcoming Economic Releases
- Germany’s Trade Balance for Jan 2020 – Forecast €15.4B, versus €19.2B previous.
- Euro Zone Sentix Investor Confidence for March 2020 – Forecast -5.0, versus 5.2 previous.
