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EUR/USD Today Technical Report 09/05/2016

EUR/USD traded higher on Friday after the US employment report showed that nonfarm payrolls rose 160k in April, missing market expectations of 203k. The pair broke above the 1.1440 (R1) barrier, but failed to reach the 1.1500 (R2) line and within the following minutes, it retreated to break back below 1.1440 (R1) and to hit support at 1.1380 (S1). Bearing in mind that the rate is trading below the upside support line taken from the low of the 25th of April and below the short-term downtrend line drawn from the peak of the 3rd of May, I would consider the short-term bias to be cautiously negative. A clear dip below 1.1380 (S1) could confirm the case and could initially target our next support at 1.1335 (S2). Nevertheless, taking a look at our short-term oscillators, I see signs that a corrective bounce could be in the works before the next negative leg. The RSI turned up again and could aim for another test near its 50 line, while the MACD, although negative, shows signs of bottoming. 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 hurdle, something that makes me stand pat as far as the broader trend of this pair is concerned.

EURO 09

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