This week starts off relatively quiet due to the US and Canadian holidays.
However, last week was marked by the release of the NFP report on friday, which turned out to be far below analysts' forecasts.
After the release of the report, we saw a mixed reaction in US indices and again saw gold and major currency pairs appreciate against the US dollar.
Let's take a deeper analysis on EUR/USD pair.
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Open account Try demo Download mobile app Download mobile appTechnical Analysis EUR/USD: 4 hours time frame chart.
On the 4 hours time frame chart we see that buyers were able to extend gains after the breakout of the falling wedge. Despite the initial difficulty, the price continues to appreciate and remains above the 50-period EMA (blue line).
Furthermore, we can also see that the price is correcting downwards, after an unsuccessful attempt by buyers. On the other hand, the lower limit of the chart structure can become interesting to see if buyers will be able (or not) to regain control over the price.
EUR/USD, 4 hours time frame chart. Source: xStation 5
US dollar Index (USDIDX)
In the US dollar index we get a deeper view of what could happen in the EUR/USD pair.
The index has been forming lower highs since August and that trend could continue in the long term.
Although the price is slowing along the 50 period EMA on the 1-hour chart, there is a possibility that the index will rebound towards the 61.8% Fibonacci levels.
USDIDX, daily time frame chart. Source: xStation 5
USD is the best major performers, while the CHF and NZD are the worst performers among the fx majors.
Source: currency-strength.com
Henrique Tomé, XTB Portugal
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
