EUR/USD is growing today for the 5th day in a row and, at the beginning of today's European session, is trading near the local resistance level of 1.1480. Its positive dynamics within the upward correction are preserved.
Market participants today are waiting for the publication of the monthly report of the US Department of Labor on employment in January. According to the forecast, nonfarm payrolls are expected to grow by 150k new jobs (against +199 thousand in December and +249 thousand, +648 thousand in previous reporting periods).
The decrease in this indicator is a negative factor for the USD. Unemployment is expected to remain at 3.9% in January. Suppose the data of the report of the Ministry of Labor turns out to be significantly worse than the forecast, then this. In that case, if it does not cancel the Fed's determination to a tough scenario regarding the prospects for monetary policy, it will cast doubt on it, which may negatively affect the USD.
Technical View
In our main scenario, the growth of EUR/USD will still be limited by the resistance levels of 1.1510, 1.1570, 1.1590, and the first sell signal will be a breakdown of the support level of 1.1440 (the upper limit of the descending channel on the daily chart) with the prospect of EUR/USD returning inside this channel and falling to the lower border of the descending channel on the weekly chart, which is currently passing through the 1.1000 mark.
- Support levels: 1.1440, 1.1400, 1.1345, 1.1318, 1.1298, 1.1285, 1.1235, 1.1195, 1.1174, 1.1100, 1.1000, 1.0900, 1.0730
- Resistance levels: 1.1480, 1.1510, 1.1570, 1.1590
Trading Recommendations - EUR/USD
- Sell: Stop 1.1420. Stop Loss 1.1490. Take-Profit 1.1400, 1.1345, 1.1318, 1.1298, 1.1285, 1.1235, 1.1195, 1.1174, 1.1100, 1.1000, 1.0900, 1.0730
- Buy: Stop 1.1490. Stop Loss 1.1420. Take Profit 1.1510, 1.1570, 1.1590
