Key Highlights
- The Euro formed a decent support above the 1.2200 level against the US Dollar.
- The EUR/USD pair attempted a close above a bearish trend line with resistance at 1.2270 on the 4-hours chart.
- The US Nonfarm Payrolls for March 2018 posted 103K, less than the forecast of 193K.
- Today, the German Trade Balance for Feb 2018 will be released, which is forecasted to post a trade surplus of €21.8B.
EURUSD Technical Analysis
After a major decline, the Euro found support above the 1.2200 level against the US Dollar. The EUR/USD pair started a recovery and moved above the 1.2240 resistance.
Looking at the 4-hours chart, it seems like the pair formed a decent support near 1.2215 and started an upward wave. It traded higher and cleared the 1.2230 and 1.2240 resistance levels.
It also attempted a close above a bearish trend line with resistance at 1.2270. However, there are many hurdles on the upside near the 1.2300-1.2315 levels. The mentioned resistance zone is near the 100 (red) and 200 (green) simple moving averages (4-hour).
Moreover, the 38.2% Fib retracement level of the last drop from the 1.2476 high to 1.2215 low is also near 1.2315. A break above the 1.2315 resistance may open the doors for more gains.
On the downside, the 1.2240 and 1.2215 levels are important supports.
Recently in the US, the Nonfarm Payrolls report for March 2018 was released by the US Department of Labor. The market was positioned for rise of 193K compared with the last 313K.
However, the result a bit disappointing as the US NFP came in at 103K and the last reading was revised to 326K. There was also no decline in the unemployment rate from 4.1%, whereas the market was looking for a decline to 4.0%. The report added that:
At 1.3 million, the number of long-term unemployed (those jobless for 27 weeks or more) was little changed in March and accounted for 20.3 percent of the unemployed. Over the year, the number of long-term unemployed was down by 338,000.
Therefore, there is a chance of a rise in EUR/USD towards the 1.2300 and 1.2315 levels in the near term.
