The US gained only 126K jobs in March and downwards revisions just made it worse. The economic weakness in the US reached the jobs market. In Europe, improving economic indicators did little to aid the common currency.
Is this time different? EUR/USD breaks above 1.10 after the event, but it’s not the first time. A previous move higher saw the pair topping out at 1.1050 and falling towards 1.07. Does it have a better footing to now to turn the dollar correction into an outright change of course?
EUR/USD lines
1.10 is a clear battle line. The previous high of 1.1050 seen not too long ago is weak resistance. Stronger resistance awaits at 1.11, which was the late January low and also a round number.
Further above, 1.12 serves as some resistance, and it’s followed by 1.1290, which had a role in the past. The last significant line on the upside is 1.1383.
On the downside, we have 1.0910, followed by 1.0850. The round levels of 1.08 and 1.07 serve as support as well.
Different opinions:
- Economic weakness reaches jobs, but what will you buy instead of USD?
- Party nearly over for USD bulls – HSBC
- How High Can The USD Go? EUR/USD to 0.98 by year end – Barclays
Here is how it looks on the chart:
