EUR/USD: US NFP a test for USD bulls – GrowthAces

FXStreet (Barcelona) - The GrowthAces Research Team give the key technical levels for EUR/USD, and further comment that with potential for USD appreciation against the EUR set to be limited, the US NFP release will be a test for USD bulls.

Key Quotes

“Although the QE programme is nothing new for investors, the EUR/USD broke below the 1.1000 after the ECB’s press conference. We used the low level to get long at 1.0990.”

“We have stressed numerous times that a lot is already in the price of the USD and further rises in U.S. rates may not benefit the currency to the same extent as before.”

“Given the oversold picture in the EUR/USD, trading well below its monthly average, the potential for further USD appreciation seems to be limited.”

“The USD resumed its rise against the EUR in early European deals on Friday. The next strong support level is 1.0917 (daily low on September 5, 2003)”

“Investors are waiting for U.S. non-farm payrolls. The market expects the reading of 240k, but our forecast is slightly lower - 230k.”

“Recent strong appreciation of the USD raises the bar for the data to push the EUR/USD significantly lower. A figure in line with the market consensus may be not enough for USD-bullish traders.”

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