Bulls eye 2020 high after taking out the last barrier; US jobs data in focus
The Euro continues to trend higher, extending steep uptrend into ninth consecutive day and hit new nearly three month high at 1.1383 in early European trading on Friday.
ECB’s decision to increase bond-buying program for additional 600 billion Euros further boosted the single currency, already inflated by dollar’s strong fall that resulted in nearly 1% rally on Thursday.
Bulls ignored terrible data this morning which showed record fall in German factory orders in May and for now also ignore overbought daily studies, as Thursday’s long bullish candle and signal on close above Fibo barrier at 1.1292 (76.4% of 1.1494/1.0635) underpin the action.
Also, bulls today broke above 200WMA (1.1333) and weekly close above would add to bullish signals.
Key barrier at 1.1494 (2020 high, posted on 9 Mar) comes in focus, as bulls cleared the last obstacle on the way.
US NFP data is key event today and could further deflate dollar and boost Euro as US unemployment is expected to rise to a record near 20% in May, average earnings to rise 1.0% in May compared to 4.7% April, while non-farm payrolls are expected to show that 8 million people lost their jobs in May, after record drop to over 20 million in April.
Weaker than forecasted US jobs data would further pressure the greenback and push Euro towards its target.
On the other side, positive surprise may deflate Euro’s bulls, which could, accompanied with end-of-week profit-taking, push the price lower.
Broken 200WMA (1.1333) marks immediate support, ahead of weekly cloud top (1.1224) which is expected to hold extended dips and keep bulls in play.
Res: 1.1383; 1.1400; 1.1457; 1.1494
Sup: 1.1333; 1.1292; 1.1244; 1.1224