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Expect a euro/dollar corrective movement to 1.0874

On Friday traders and investors continued to sell euros throughout the market. The fall hastened after 15:30 EET when the USA released strong data values on its labor market. February non-farm payroll employment in the US increased by 295,000 compared to a forecasted 240,000 increase. The January values for this indicator were reassessed from 257,000 to 239,000. The unemployment level dropped from 5.7% to 5.5%, whilst it was forecasted to be 5.6%. The average hourly wage increased by 0.1%, although forecasted to be 0.2%, previous 0.5%.

Euro daily losses stood at 190 points (1.72%). Currently, the pair is trading around 1.0841. On Monday I always compare movements versus Friday’s labor market report. There’s no important news planned for today, so I’m waiting for the EURUSD to recover to 1.0874. If the 1.0874 level is achieved on the European session, then I expect the Yankee dollar to bounce back to the LB. Ideally, the LB balance line (simple average line with a 55 period) needs to meet with the price.

Since 16th February the euro/dollar has fallen by 6 figures. The market took a pause around 1.0700/800 so that sellers could collect themselves for an approach to 1.0540 and, afterwards, 1.0250. If you’re looking at a monthly time-scale, the dollar has an open road up to 1.0100.

Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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