Good afternoon traders,
After breaking out of the following EUR/USD range, the pair has since pulled back to retest the broken resistance level this time as support:
The NFP release on Friday was a nice beat of expectations, with 209,000 jobs created in July, versus a consensus of 183,000. Average Hourly Earnings also saw a 2.5% increase on a YoY basis versus the 2.4% consensus.
This was exactly what the US Dollar was looking for to bounce out of USDX support and as a result, bring EURUSD down with it.
This next chart is the same daily chart as the first, but just zoomed in a little deeper to more clearly show the candles.
You can see a confluence of both the daily range top, as well as a pause in the bullish move that price is reacting to. I’ve marked both levels on this chart and the way this last candle spiked down into it and then closed higher is a good sign for a further bullish move on EUR/USD.
Now we’ve broken out of the hugely significant daily range, the bulls aren’t going to give up the momentum they’ve worked so hard for on a single NFP reading… are they?
Best of probabilities to you!
Dane Williams – @VantageFX
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.
Source: Vantage FX Blog