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3 Jun 2015
Strong US NFP unlikely to push EUR/USD below 1.10 – FXStreet
FXStreet (Barcelona) - Sharing the technical outlook for EUR/USD, FXStreet Editor and Analyst, Omkar Godbole, believes that the pair requires a stronger than expected US NFP print along with negative Greece headlines to dive below the 1.1050-1.1080 area.
Key Quotes
“The pair could come under pressure in case of a better-than-expected US non-farm payrolls report in the US. The markets are expecting the NFP report to show the US economy added 225K jobs in May. A better-than-expected print could push the pair lower by 100-150 pips. However, at present, it appears that even a better-than-expected data may not be able to push the pair below the support zone of 1.1050-1.1080.”
“This means, a sharp sell-off in the EUR/USD could be seen only if the Greece issue somehow flares up. In such a case, the first indication would be - Fall in German yields and sharp rise in periphery bond yields.”
EUR/USD – Break above 1.1190 is bullish
“The hourly chart shows, a break above 1.1190, which is the inverted head and shoulder neckline level. Consequently, we have an upside technical target of 1.1563.”
“The latest cyclical high stands at 1.1465. A strong upside momentum could ensure the rally gets extended to the psychological level of 1.15 levels.”
“A Fib expansion of 1.0817-1.1004-1.0885, shows immediate resistance at 1.1256 (200% Fib expansion). A daily close above the same open doors for 1.1312 (76.4% Fib R of 1.1465-1.0817).”
“However, as per technical studies, the pair could extend gains to 1.15 only in case of a daily close above 1.1293 (23.6% Fib R of 1.3991-1.0461).”
“Meanwhile, on the downside, only a daily close below 1.1190 could being in fresh offers and push the pair down to 1.1132.”
Key Quotes
“The pair could come under pressure in case of a better-than-expected US non-farm payrolls report in the US. The markets are expecting the NFP report to show the US economy added 225K jobs in May. A better-than-expected print could push the pair lower by 100-150 pips. However, at present, it appears that even a better-than-expected data may not be able to push the pair below the support zone of 1.1050-1.1080.”
“This means, a sharp sell-off in the EUR/USD could be seen only if the Greece issue somehow flares up. In such a case, the first indication would be - Fall in German yields and sharp rise in periphery bond yields.”
EUR/USD – Break above 1.1190 is bullish
“The hourly chart shows, a break above 1.1190, which is the inverted head and shoulder neckline level. Consequently, we have an upside technical target of 1.1563.”
“The latest cyclical high stands at 1.1465. A strong upside momentum could ensure the rally gets extended to the psychological level of 1.15 levels.”
“A Fib expansion of 1.0817-1.1004-1.0885, shows immediate resistance at 1.1256 (200% Fib expansion). A daily close above the same open doors for 1.1312 (76.4% Fib R of 1.1465-1.0817).”
“However, as per technical studies, the pair could extend gains to 1.15 only in case of a daily close above 1.1293 (23.6% Fib R of 1.3991-1.0461).”
“Meanwhile, on the downside, only a daily close below 1.1190 could being in fresh offers and push the pair down to 1.1132.”