4 consecutive rallied days, then the selloff arose and erased the gain,poor job for E/U.
This is fifth times E/U rejects 1.100 levels proving that this is a very strong resistance.
EURUSD is a boring pair. It sideways in tight range between 1.07 and 1.1000 for two months. Only 300 pips or even smaller: 200 pips : 1.08-1.10
I don't expect E/U would break the range this week. There are two forces which keep E/U in this range.
- ECB signaled they will increase easing.
- Euro plays the role as safe haven currency.
So how to trade EURUSD this week ?
We have two Mario Draghi Speeches , EZ employment report and Payrolls.
Mario of course will not say anything supporting Euro as he wants Euro down.
EZ employment report and payrolls are unknowns.
After three consecutive positive data, January payrolls likely be worse than expect while I expect EZ employment report will be neutral.
I like SELL. EURUSD now stops at ascending I draw on the chart. Any break will open the door to lower level.
I think buyers are losing momentum and give the stage to sellers.
I continue pricing EURUSD to 1.0700 this week.