EUR/USD edges higher after a minor drop and retest of important broken resistance. The pair is trading at 1.2162 and is targeting the 1.2 psychological level. The pair is expected to jump higher and resume its upside journey if the USDX continues to drop.
Today could be decisive for the USD as the US is to release the Non-Farm Payrolls, Unemployment Rate, and the Average Hourly Earnings. The NFP is projected at around 480K, while the Unemployment Rate could drop to 6.8%.
Fundamentally, the USD drops as the FED could add new stimulus measures in the next monetary policy meeting due to the economic deterioration. The greenback is into a strong corrective phase against all its rivals, so only better than expected US economic figures could save the USD from further declines.
EUR/USD Targeting 1.2 Psychological Level
EUR/USD has managed to close above the upper median line (uml), dynamic resistance, and now it has retested this broken obstacle signaling the upside continuation. 1.2 psychological level is seen as the next upside target.
A valid breakout above the R3 (1.2181) could validate a bullish rally towards 1.23 or up to the first warning line (ascending dotted line).
- EUR/USD Trading Conclusion
A bullish closure above the R3 (1.2181) suggests buying with targets at 1.2250 and 1.23 levels.
