The euro is declining against the dollar, having also failed to receive support from today's publication of a block of macro statistics on the eurozone.
EUR/USD has been declining since the beginning of today's trading day amid the strengthening of the dollar ahead of the NFP report. As of writing, EUR/USD is testing for a breakout an important short-term support level 1.0504 (200 EMA on the 4-hour chart).
With further decline, the 1.0435 key support level (200 EMA and 50 EMA on the EUR/USD daily chart) becomes the target. A breakdown of the 1.0345 support level (144 EMA on the daily chart) will increase the risks of EUR/USD returning to the global downward trend.
In an alternative scenario, the growth of EUR/USD will resume. A break of today's high at 1.0535 will be the first signal to resume long positions, and a break of the 1.0556 resistance level (144 EMA on the 4-hour chart) will be a confirmation. The nearest growth target is the level of 1.0600, and the more distant one is the local resistance level and December's high at 1.0735.
Nevertheless, from a technical point of view, short positions remain preferable at the moment.
Support levels: 1.0504, 1.0435, 1.0400, 1.0345, 1.0300, 1.0190, 1.0000, 0.9745, 0.9700, 0.9600, 0.9550, 0.9500
Resistance levels: 1.0535, 1.0556, 1.0600, 1.0700, 1.0735
Trading Tips
Sell Stop 1.0480. Stop-Loss 1.0540. Take-Profit 1.0435, 1.0400, 1.0345, 1.0300, 1.0190, 1.0000, 0.9745, 0.9700, 0.9600, 0.9550, 0.9500
Buy Stop 1.0540. Stop-Loss 1.0480. Take-Profit 1.0556, 1.0600, 1.0700, 1.0735, 1.0750, 1.1035, 1.1100, 1.1150
