Forex Technical Update
The US Non-Farm Payroll data for February came out slightly better than expected. 227K vs. a 209K forecast . January's data was revised from from 243K to 284K. The USD and even more so the CAD gained across the board after this release. For the EUR/USD, the reaction is a bearish continuation signal. The 4H chart shows that it had a rally to the 50% retracement and previous resistance pivot.
This bearish attempt right now broke below a key pivot at 1.3160, and now if it breaks below 1.3093, it opens up toward the 1.2970-1.30 support area. The RSI in the 1H chart should break below 40 and tag 30 in this bearish scenario.
A break below 1.2950 should open up further bearish outlook, opening up the 1.2620 2012 low. This should be accompanied by the daily RSI breaking below 40. If the RSI reading fails to break 40, the bullish momentum is still maintained in the medium term. IF the RSI does break below 40, we are likely to have the momentum to push toward 1.2620 again. Before the 1.2620 low, the 1.28 handle should be monitored for support as well as a psychological support near an actual resistance pivot for the early January consolidation period.
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Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.