EUR/USD: scope to test 1.0760 next week – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, gives the technical outlook for EUR/USD, expecting a stronger than consensus US NFP print to drag the pair lower to test 1.0920 levels, a break below which might lead the pair to test 1.0760 by next week.

Key Quotes

“The market waits now for the US employment figures, and consensus is for a strong 235K new jobs added in February, with a lower unemployment rate of 5.6% and higher wages.”

“Despite the 4 hours chart shows that the pair is extremely oversold, as the RSI indicator heads strongly south around 18, a reading above expected should trigger a fresh sell-off in the common currency, pointing to test 1.0920 against the greenback.”

“If the pair falls beyond this last, next support for the day comes at 1.0870, but doors will stay open for a continued decline towards the 1.0760 level next week.”

“To the upside, 1.1000 comes as the immediate resistance, the level to watch if the numbers disappoint, with an extension above it pointing for a rally up to 1.1060.”

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