Before us the last session of the week, which is rich in very important readings from the US labor market. On Friday, we will among other things, a change in employment in non-agricultural sectors and the unemployment rate.
Analyzing the currency pair from the purely technical, we can conclude that after the recent rally, we should see a correction. Surely we can agree that the instant the potential for further growth is low, due to the proximity of resistance and strong buying. However, it should be noted that the upward trend is quite strong, while another weaker data from the US economy, may become another impetus for further growth. Therefore, we can assume two scenarios.
The first assumes that the data from the US, will be much lower than expected, which will support the euro. In this case, the last summit at the level of 1.1240 should be exceeded, and the demand side, perhaps, will move towards the resistance zone of 1,1280-1,1310. Then Eurodollar will be ready for a correction. In the longer term we should move towards the level of 1.1495.
The second variant envisages much better readings from the US (which is rather unlikely) that will support the dollar. In this case, the supply side is correct, recent increases. The objectives of the supply should be the levels 1.1143 (23.6% fibo) and 1.1085 (38.2% fibo). In the longer term I expect further gains towards 1.1240 and 1,1280-1,1310. Ultimately, demand should aim to test the level of 1.1495.
Analyzing the currency pair from the purely technical, we can conclude that after the recent rally, we should see a correction. Surely we can agree that the instant the potential for further growth is low, due to the proximity of resistance and strong buying. However, it should be noted that the upward trend is quite strong, while another weaker data from the US economy, may become another impetus for further growth. Therefore, we can assume two scenarios.
The first assumes that the data from the US, will be much lower than expected, which will support the euro. In this case, the last summit at the level of 1.1240 should be exceeded, and the demand side, perhaps, will move towards the resistance zone of 1,1280-1,1310. Then Eurodollar will be ready for a correction. In the longer term we should move towards the level of 1.1495.
The second variant envisages much better readings from the US (which is rather unlikely) that will support the dollar. In this case, the supply side is correct, recent increases. The objectives of the supply should be the levels 1.1143 (23.6% fibo) and 1.1085 (38.2% fibo). In the longer term I expect further gains towards 1.1240 and 1,1280-1,1310. Ultimately, demand should aim to test the level of 1.1495.