EUR/USD did not move a lot after NFP data failed to ignite a new move. ("After almost a month of lethargy we finally got some action in EUR/USD. After the ECB interest rate decision EUR/USD dipped down to the low 1.35s. It did not stay there for long, rallied again and closed higher for the day. A look at the daily chart shows the huge reversal candle. A similar one (to the downside) we had seen early in May, on the day of the previous ECB announcement. A 400 pip drop followed after that candle. We could see a similar move again, but this time in the other direction. In any case – yesterday’s price action was bullish and after some form of consolidation (technical retracement) EUR/USD should continue to the upside. The main focus today is the nonfarm payrolls report from the US.")
Non-farm payroll data was in-line with expectations on Friday and did not bring any new impulse. Today there is no major economic data from the euro zone (apart from the sentix consumer sentiment index) so we expect a rather quiet start into the new week of trading. It is likely that the single currency will bounce between the high (red box) and the low (green box) of Friday – we do not expect a major breakout either way. After the bullish reversal day from last Thursday we are overall bullish for the pair and sooner or later (not today) expect another stronger rally attempt towards 1.37 and beyond.
EURUSD 1h Technical Analysis
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