The Euro-Dollar took a halt on its bearish trend after some very bullish data for the Dollar last week. The US job report came out to be even better than expected with unemployment at 3.7% (expected was 3.9%) and the non-farm payrolls at 199,000 (expected was 180,000). Investors and traders are looking forward to various events on the economic calendar this week including the US inflation data, Fed meeting and the European central bank meeting as well as to the press releases following the central bank meetings to get some insights on the future developments of the monetary policies.
‘This is a rather interesting week to be following the fiber pair since the major economic data to be published will most certainly create volatility on the majority of Euro and Dollar pairs.’ said Antreas Themistokleous, an analyst at Exness.
From the technical point of view the price slowed down on its bearish momentum around $1.075 which was a major technical support area which was made up of the 50% of the daily Fibonacci retracement level, the 50 day moving average as well as the lower band of the Bollinger bands. The Stochastic oscillator is recording extreme oversold levels and has been in oversold for the last 2 consecutive weeks. This might indicate that the recent slow down of the bearish trend might support a correction to the upside in the coming sessions.
If this scenario is confirmed then the first area of possible resistance might be laying around the $1.08800 price area which is made up of the 23.6% of the daily Fibonacci retracement level as well as an area of price reaction since late November.
‘This is a rather interesting week to be following the fiber pair since the major economic data to be published will most certainly create volatility on the majority of Euro and Dollar pairs.’ said Antreas Themistokleous, an analyst at Exness.
From the technical point of view the price slowed down on its bearish momentum around $1.075 which was a major technical support area which was made up of the 50% of the daily Fibonacci retracement level, the 50 day moving average as well as the lower band of the Bollinger bands. The Stochastic oscillator is recording extreme oversold levels and has been in oversold for the last 2 consecutive weeks. This might indicate that the recent slow down of the bearish trend might support a correction to the upside in the coming sessions.
If this scenario is confirmed then the first area of possible resistance might be laying around the $1.08800 price area which is made up of the 23.6% of the daily Fibonacci retracement level as well as an area of price reaction since late November.