Is eur/usd bearish or bullish?
It appeared that eur/usd was struggling
between 1.38 and 1.3850, but since it crossed its resistance 1.3850 and it is
trading at 1.3875, we might be expecting an extended bullish trend and new
bullish target at 1.4. But any sign of bearish signal may lead the pair to be
traded at 1.37 followed by 1.35.
Fundamental analysis
The US Non-Farm Payroll came across better than
expected as more jobs were created. Having said so, it is important to
understand that the drop in unemployment rate is also due to a reduction of the
statistic population size.
Across the Atlantic, the euro zone unemployment
rate dropped too. However Spain’s unemployment remains critical as it is above
25%. The union of various economies with different situations remains a major
challenge for the euro zone.
The European Central Bank is meeting for the
minimum bid rate this week and there are some concerns regarding the interest
rate. Do be careful of any unexpected developments.
Technical analysis
Main scenario:
The uptrend may be expected to continue while
pair is trading above support level 1.3810, which will be followed by reaching
resistance level 1.3935 and then to 1.4 .
Alternative scenario:
An downtrend will start as soon, as the pair
drops below support level 1.3810, which will be followed by moving down to
support level 1.3700 and then 1.35.
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