Monday, May 6, 2019

EUR/USD - 06 May 2019

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Fundamental Highlights

The Euro had a volatile session on Friday but ended up closing the day positively above 1.12. The common currency fell to 1.1136 after the big beat on the US April Non-farm Payroll and the slide in the jobless rate to the lowest since 1969. But the Dollar gains were short-lived as US Vice President Mike Pence joined the chorus of Trump administration officials calling for a rate cut, and ISM Non-Manufacturing PMI missed market expectations, which made the shared currency to bounce and end the day on the bulls’ side. Overall market sentiment remains bearish on this pair as long as Interest Rates aren’t officially cut yet. Today, traders will be watching the EU macroeconomic calendar as Spain, France, Italy and Germany will release their Services PMI, and the Eurozone will reveal the March Retail Sales data.

Technical Analysis

The Euro was heading to retest 1.1115 on Friday, the 2019 lows, but the bulls showed up out of nowhere and took the price higher to close above 1.12. The buyers will attempt to retest 1.1230 (R1) during today’s session, keeping in mind that the trend is still bearish as long as price is trading below 1.13. However, the sellers will keep the pressure on the single currency targeting the yearly low, 1.1115 (S3).

Support: 1.1185 / 1.1115 / 1.1050
Resistance: 1.1230 / 1.1260

Chart (H4)
EURUSD