FXStreet (Barcelona) – EUR/USD technicals maintain a bearish tone for EUR/USD, with a break below 1.1050 expected to expose 1.10 levels, explains Valeria Bednarik, Chief Analyst at FXStreet.
Key Quotes
“The EUR/USD pair dropped over 150 pips after the release of US Nonfarm Payroll figures for May, showing the economy added 280K new jobs, far above the expected 225K or the average of 266K previous to March slump. Furthermore, there were several upward revisions to previous numbers, whilst wages ticked higher. Unemployment rate, surged back to 5.5% the only negative note of the report, but the market has ignored it, probably because it’s still within FED’s target.”
“Following the initial spike, a short term upward corrective movement was contained by 1.1120 static resistance level, and the pair extends its decline to fresh lows in the 1.1050 region early US opening.”
“The short term technical picture shows that the technical indicators are now in extreme oversold levels due to the violent move, but maintain their bearish tone, leaving little room for recoveries.”
“Should the price break below 1.1050, the next strong static support level, the risk turns towards the 1.1000 figure, where the price may finally stalled today.”
“Support levels: 1.1050 1.1010 1.0960“
“Resistance levels: 1.1080 1.1120 1.1160”
(Market News Provided by FXstreet)