June 10, 2019, | SQUARED DIRECT – The Euro soared towards 1.1350 on Friday after the US economy added only 75K jobs in May, well below the 185K expected, bringing back fears of slowing economic growth, as jobs’ creation is the second lowest in almost two years. The dollar will likely remain under pressure until Fed’s next FOMC meeting to shed light over the future of monetary policy.
Looking ahead, the EURUSD opened weaker today after US-Mexico reached a deal to avoid imposing tariffs. However, traders will remain focused on the monetary policy decision to adjust their trades as it is the current main market driver. In terms of macroeconomics, the EU won’t be releasing any major data today, but the US will be revealing JOLTs Jobs openings, a weaker than expected numbers could send the single currency back to Friday highs and possibly even higher.
EURUSD technical analysis
The Euro climbed to 1.1350 on Friday after breaking above the key resistance level, 1.13. A retest of this level will be ideal before continuing this bullish momentum to new highs. The bears, on the other hand, will try to break the price below 1.13 to regain short-term control and revisit 1.1260. However, with the 50 and the 200-day moving averages crossing over to the upside, the overall sentiment will remain bullish as long as the price is trading above 1.1260.
Support: 1.13 / 1.1260
Resistance: 1.1320 / 1.1350
Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves a high level of risk. Therefore, Forex and CFDs may not be suitable for all investors because it is possible to lose all invested capital. Only invest with money you can afford to lose. Before deciding to trade, you need to ensure that you understand the risks involved. Seek independent advice if necessary. Please refer to our Risk Disclaimer.