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EUR/USD Today Technical Report 06/05/2016

EUR/USD tumbled on Thursday falling below 1.1440 (R1) and hitting support at 1.1390 (S1). The short-term outlook remains cautiously positive in my view, but I prefer to wait for a break back above 1.1500 (R2) before I get confident on larger advances. However, today’s directional movement will depend on the outcome of the US employment data for April. The NFP is expected to show a 202k jobs growth, while both the unemployment rate and average hourly earnings are expected to have remained unchanged. This would be a solid report overall and could support the dollar. A break below the support of 1.1390 (S1) and the upside support line taken from the low of the 24th of April, could extend the recent retreat and perhaps initially aim for the 1.1335 (S2) support hurdle. Switching to the daily chart, I see that the pair started sliding after it hit resistance at 1.1620, near the prior upside support line taken from the low of the 13th of March. What is more, the pair is trading back below the 1.1500 (R2) hurdle, something that makes me stand pat as far as the broader trend of this pair is concerned.

EURO 6

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