EURUSD: Recovers With Caution!
Recommendations: Long positions above 1.1647 with 1.1720 and 1.1788 as next targets.
Alternative scenario: The downside breakout of 1.1647 will bring a slide to 1.1590 before another rise.
Description: With the pair closing above 1.1675 levels yesterday, now eys on the 1.1788 levels, a halt is likely but a break will aim the 1.1840 levels, next resistance comes at the 1.1937 levels. On the downside, a daily closing back below 1.1675 should weaken the recent recovery and open the way to the 1.1509 levels, Anyway; the pair remains in a recovery mode as long as trades above 1.1509 on a daily closing basis and further upside couldn’t be ruled out.
On the 4-hour chart, the pair is bullish above 1.1647 – broken resistance turned support, above this level will keep pushing towards the 1.1720, a halt is likely – as seen yesterday- but a break will aim the 1.1780 levels, further upside, resistance comes at the 1.1840 levels. On the downside, below 1.1647 will bring corrective pullback to the 1.1590 levels before another rising, however; below 1.1590 will look for the 1.1545/1.1509 levels.
Key data/events which may affect EURUSD pair today:
1- German Manufacturing PMI (May) at 08:00 GMT.
2- U.S Nonfarm Payrolls (May) at 12:30 GMT.
3- U.S Unemployment Rate (May) at 12:30 GMT.
For more details about U.S jobs report, stay tuned for the next post?!!