EUR/USD managed to retreat a little in the short term. The US NFP and the unemployment rate figures surprised market participnats on Friday. However, the outlook is still bullish despite a minor drop. I really hope that we'll have a clear direction and a fresh trading signal soon as the pair is trading near a major resistance zone.
The USD rallied as the US unemployment rate was reported at 13.3%, lower versus the 19.4% estimate. At the same time, in May, the non-farm payrolls jumped to 2,509K jobs whereas specialists had expected the US to lose 7,750K jobs. We'll see what will happen this week, the USD needs much more to be able to dominate in the market again.
The EUR/USD bullish momentum was stopped by the upper median line (UML) of the ascending pitchfork and by the monthly R2 (1.1383) level which acted as a static resistance. The current drop could be only a temporary one if the price fails to stay below the upper median line (UML) of the orange descending pitchfork.
A valid breakout above the upper median line (UML) and above the R2 (1.1383) will validate a further increase in the next weeks. On the other hand, another false breakout above the upper median line (UML), a pin bar or a bearish engulfing, could signal an important drop in the short term.
EUR/USD decreased only because the USDX managed to rebound, but unfortunately, the index is still under massive selling pressure. A USDX further drop will push the EUR/USD pair higher.
- EUR/USD Trading Tips
We may have another long opportunity after a valid breakout from the descending pitchfork's body above the upper median line (UML) and above the R2 (1.1383) static resistance. Another higher high, a jump above the 1.1383 level, will announce a breakout above the 1.1494 high as well the R3 (1.1622) level could be used as a target as well.
Another rejection from the upper median line (UML) or another false breakout with huge separation could confirm a drop towards the 1.1200 psychological level. EUR/USD is more buying than selling now, only a reversal pattern here could suggest selling in the short term.
