The Euro is trading flat against the U.S. Dollar on Monday as investors continue to digest Friday’s disappointing, but not bearish U.S. Non-Farm Payrolls report. The headline number missed the estimate and Average Hourly Earnings came in slightly lower than expected. However, the report wasn’t weak enough to rattle the Federal Reserve policymakers.
At 14:58 GMT, the EUR/USD is trading 1.1121, down 0.0001 or -0.01%.
Earlier in the session, the EUR/USD was underpinned when Euro Zone government bond yields rose Monday ahead of the signing of the Phase 1 trade deal between the United States and China, the first staging post in ending a dispute that threatened to hammer global growth and boosted demand for safer assets such as bonds.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum is trending higher. A trade through 1.1085 will change the main trend to down. A move through 1.1239 will signal a resumption of the uptrend.
The main support zone is 1.1096 to 1.1045. This zone stopped the selling on Friday at 1.1085.
The first resistance level is 1.1146. This is followed by additional upside target levels at 1.1185 and 1.1209.
Daily Technical Forecast
Based on the early price action and the current price at 1.1121, the direction of the EUR/USD on Monday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1126.
A sustained move over 1.1126 will indicate the presence of buyers. If this creates enough upside momentum then look for a possible rally into the 50% level at 1.1146, followed by a downtrending Gann angle at 1.1159.
A sustained move under 1.1126 will signal the presence of sellers. This move could generate the downside momentum needed to challenge the 50% level at 1.1096. Taking out this level targets the main bottom at 1.1085. If this bottom fails then look for a change in trend and a potential acceleration to the downside.
This article was originally posted on FX Empire
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