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EUR/USD Today Technical Report 04/04/2016

EUR/USD traded lower on Friday after the US employment report showed that the economy added 215k jobs in March, exceeding expectations of 205k. Nevertheless, the retreat was stopped by the 1.1335 (S2) line and then the rate rebounded again. The price structure on the 4-hour chart remains higher peaks and higher troughs, something that keeps the short-term picture positive. I believe that buyers will take control again at some point and aim for another test near the 1.1440 (R1) resistance zone. For now though, I see signs that another setback may be on the cards before the next positive leg. A break below the 1.1370 (S1) would confirm the case and perhaps aim for another test near the 1.1330 (S2) level. Another pullback is also supported by our short-term momentum indicators. The RSI exited its overbought territory, while the MACD, although positive, has topped and fallen below its trigger line. Switching to the daily chart, I see that EUR/USD is still trading between the 1.0800 key zone and the psychological area of 1.1500 (R2). Therefore, I would keep the view that the broader trend remains sideways.

EURO 04

 

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