The EURUSD declined towards 1.3550 levels yesterday, tested the rising support line from 1.2754/1.3294 levels ,the pair was rejected late in the U.S session and ended the day above 1.3600 levels.
Momentum indicators show that sellers are losing the downside momentum , the downside move yesterday was contained by the rising support line from – middle of 2013 – and the sloping support line – red thick line in the chart chart – however ; stability above both lines will keep the bullish momentum intact , and strong recovery to the upside couldn’t be ruled out, and the smart question is :
Will U.S Non-Farm Payrolls change trend direction ?!!!
Yesterday , the ECB meeting came with no breaking news and left the rate unchanged as expectations , with no major data from EUROzone , the EURO remains steady and firm to the upside in medium term and sideways in short term , now focus will be on U.S Non-Farm Payrolls ?!!
The US economy is expected to add 194.000 jobs today at 13:30 GMT , How U.S Non-Farm Payrolls will affect the EURUSD today ?!!
- Bullish Scenario : A reading below 194K , is seen as negative for the USD , If seen , especially if the pair manage to take out 1.3655 levels on a daily basis , next challenge would be 1.3892 levels.
- Bearish Scenario : A reading above 194K ; is seen as positive for the USD , If seen , and the pair manage to hold below 1.3525 levels on a daily basis , 1.3400 will be in sight ahead of 1.3294 ( strong support).