The EURUSD is heading back to parity at 1.0000 as the USD continues to weaken. However, the USD Index is coming into support, could this see the EURUSD price reverse?
Watch the video to learn more…
The EURUSD price is heading back to parity as the USD continues to weaken. However, Non-Farm Payroll data will be announced on Friday which could be the key to seeing the USD continuing its recent bullish run. Investors will be keen to see if the supply and demand in the labor market has become more balanced with a drop in numbers. This should see the Fed become more dovish in turn seeing the USD weakness prevail. However, larger than expected jobs data could see pressure return to the Fed to hike rates further and more aggressively.
Looking at the 4hr chart we can see that the price is in an impulsive phase heading to the key resistance zone between 1.0000 and 1.0050. This resistance zone has confluence with the larger time frame trendline resistance. The weekly time frame is showing a downward trend but the price in a retracement phase. If this phase is going to turn we need to see the 4hr time frame form a reversal pattern at this resistance level. This could be in the form of a double top pattern, head and shoulders pattern or a lower low pattern.
Did you see our GBPUSD Analysis? You can see it here.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.