Good day forex traders.
Welcome to another weekly review of the EUR/USD. In the previous forecast we noted a double top. This is bearish technical pattern and we will need to monitor for a reversal of momentum from bullish to bearish.
Diving deeper into the analysis, we see the full extent of the bearish momentum. If it continues, the next support may be 1.05. As observed above, the current region may result in consolidation.
The recent US Non-Farm Payroll brought with it excitement and disappointment. BBC reports. ”
The US unemployment rate fell to its lowest in almost a decade in March, despite the economy adding a smaller than expected number of jobs.
Employers added 98,000 jobs last month – far fewer than the 180,000 expected by economists and less than half the figure for January and February.
However, the unemployment rate fell from 4.7% in February to just 4.5% – the lowest since May 2007.
Anything under 5% is considered to indicate “full employment”.
The economy needs to create 75,000 to 100,000 jobs a month to keep pace with growth in the working-age population.
The US had added more than 200,000 jobs in both January and February, but March brought lower temperatures and a major storm to the North East, which was likely to have hit hiring. ”
As mejtioned, while the number of jobs created was lower than expected, unemployment hit a low never seen since May 2007. This will probably give the sentiment towards the US a boost.
The week ahead brings important economic events such as a talk by US Federal Reserve Bank chair and US Retail Sales. Do trade safely.