The Euro soared towards 1.1350 on Friday after the US economy added only 75K jobs in May, well below the 185K expected, bringing back fears of slowing economic growth, as jobs’ creation is the second lowest in almost two years. The dollar will likely remain under pressure until Fed’s next FOMC meeting to shed light over the future of monetary policy. Looking ahead, the EUR/USD opened weaker today after US-Mexico reached a deal to avoid imposing tariffs. However, traders will remain focused on the monetary policy decision to adjust their trades as it is the current main market driver. In terms of macroeconomics, the EU won’t be releasing any major data today, but the US will be revealing JOLTs Jobs openings, a weaker than expected numbers could send the single currency back to Friday highs and possibly even higher.
The Euro climbed to 1.1350 on Friday after breaking above key resistance level, 1.13. A retest of this level will be ideal before continuing this bullish momentum to new highs. The bears on the other hand, will try to break price below 1.13 to regain short-term control and revisit 1.1260. However, with the 50 and the 200-day moving averages crossing over to the upside, the overall sentiment will remain bullish as long as price is trading above 1.1260.
Support: 1.13 / 1.1260
Resistance: 1.1320 / 1.1350