With the USD bouncing we want to sell any spike in the EUR/USD. I want to short at 1.1650 with a stop loss at 1.1750 and a profit target of 1.1500.
EUR/USD 240 min Chart - EUR/USD is Turning
US Non-Farm Payrolls in Focus
The EUR/USD has fallen away quickly and it is really thanks to fair bit of technical resistance overhead. However, it didn’t hurt that the USD finally found some buying interest to close out the week.
The last seven days have been dominated by more talk surrounding trade. While the US-China battle is coming to another important point this week. US President Trump looking to impose $200 billion worth of tariffs at 25% on Chinese imports starting as early as this week.
However, that was offset by the trade deal that has been worked out between the US and Mexico. Canada appears to be not too far behind.
The trade talk continues to take away from the fact that the US economy is really doing well and that was highlighted this week by a GDP figure of 4.2% which was above the expected figure of 4%.
We also have to remember that the US will be away on Monday for a holiday, so trade will be a little on the quiet side as the week begins.
Key Economic Data
In terms of the EUR there is no top-tier data out this week. So the attention will be firmly on the US.
The key data point is obviously US employment. The economy continues to improve and we are looking at 190K new jobs created last month. This is up from 157K jobs in the prior month.
The EUR/USD has got clear resistance around the 1.1740-50 level. Price simply couldn’t crack this point last week and we sold off sharply.
To the downside 1.1540 and 1.1500 are the two major support levels that will likely be in-play for us this week. If they both crack then there is every chance we will see the lows of 1.1300 in the near future.
EUR/USD - Key Levels
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