EURUSD → The 1.100 liquidity area is interesting for the market

EURUSD is in the phase of a local uptrend. The reason is the decline in the dollar index on the background of weak fundamental policy. The target in this case is the 1.100 liquids area

For two weeks in a row the dollar index ( DXY ) is trading with a negative fundamental background, which is quite favorable for the euro. As the price is inside the range and in the phase of growth from the support, in case of distribution of targets for the market the area of interest is the upper boundary - 1.100. But, today the news is published, as this factor brings a drop of unpredictability, we need to understand that the break of the support of the ascending channel will break the structure. And a retest and consolidation of the price above 1.0897 will form the potential for further growth.

Support levels: 1.0897, channel support
Resistance levels: 1.100

I expect that the currency pair can realize a bullish potential, as the area of 1.100 is interesting for the market.

Regards R. Linda!

Comment:

Yesterday we got Initial Jobless Claims at 217K, which is neutral. The dollar continues to reign in the neutral-negative fundamental backdrop.

Today all eyes are on NonFarm Payrolls. In the last period it was received extremely unexpected data of 353K. Today analysts are expecting 198K. Obviously, 353K is a painted figure, the data is back to its target. Based on the Wednesday-Thursday information, the market is neutral-negative. Our expectation for NFP is 198K - 187K, which will continue to support the overall fundamental backdrop and the dollar will continue to decline slightly towards support.

Higher than expected data will strengthen the dollar
Conversely, lower than expected data will weaken the dollar.

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