- – The Euro traded higher against the US Dollar and moved above the 1.0640 resistance area.
- – There is a major bullish trend line formed on the 4-hours chart of EUR/USD with support on the downside at 1.0620-00.
- – Today, the US employment, NFP and unemployment figures will be released by the US Department of Labor, which may impact the EURUSD pair.
US NFP and Spanish Unemployment Change
Today in the US, the NFP, Average Hourly Earnings and unemployment figures will be released by the US Department of Labor. The market is aligned for positive numbers in Nov 2016. Let us wait and see how the actual result is, and its impact on the greenback.
Today in the Euro Zone, the Spanish Unemployment Change, which shows the number of unemployed workers added during the previous month was released by the Spanish Government. The market was expecting a chance of -25.8K in Nov 2016, compared with the last change of 44.7K.
However, the result was disappointing, as the Spanish Unemployment Change came in at 24.8K. The report added that the “number of permanent contracts increased by 16.6% year on year, more than double what they grow temporary contracts, 7.9%. The cumulative decrease of unemployment since the beginning of the year is 303,685 unemployed, most of the historical series in November”.
Overall, the outcome was not as the market expected, which may push the EURUSD pair a few pips down in the short term.
EUR/USD Technical Analysis
The Euro after struggling a lot around the 1.0640 resistance area against the US Dollar finally broke higher. There was a break above the resistance area and the 100 simple moving average (H4).
The EUR/USD pair traded as high as 1.0689, and started correcting lower. The pair is currently finding bids near the 100 simple moving average (H4). Any further declines may take the pair towards the 23.6% Fib retracement level of the last wave from the 1.0552 low to 1.0689 high.
Moreover, the broken resistance area above 1.0600 may now act as a support if the pair moves down. Overall, it looks like the EUR/USD pair remains supported on the downside and could face bids around 1.0620-40.
Tags: EUR/USD Technical Analysis, Euro, Euro Zone, Spanish Unemployment Change, US Dollar, US NFP