Could the EUR/USD Reach the 1.0985 Mark Again?
- EUR/USD has been ranging between two marks the 1.0770 & 1.0985 levels
- Negative news coming for the biggest economy in the world
- A potential move from the bulls towards the 1.1000 level
4-Hr Time Frame:
The Euro is still weak against the Greenback, and it lost more than 2% of its value in the last few days. The “Fiber” depreciated from 1.1000 to 1.0770 level.
The Euro has been ranging between two levels the 1.0770 & 1.0985 since the beginning of April. EUR/USD managed to break the white trendline signalling a potential reversal.
A divergence between the prices of EUR/USD can be seen and the values of the MACD. The Euro is displaying higher lows while the values of the MACD are showing lower lows.
To be able to see an upward movement towards the 1.0985, the “Fiber” should close above the 100-SMA. However, if the EUR/USD stays tradable under the 100-SMA, the 1.0770 level might be reached again.
On Friday, two major news were released showing the health state of the U.S. economy.
“Non-Farm Employment change” showed that 20.5 million Americans filed as unemployed in April. Experts expected a higher number than that, 21.5 million instead of 20.5 million. The EUR/USD did not react as it should on this news. On the opposite, on Friday the Euro gained value against the U.S. Dollar.
Another news was released on Friday is the unemployment rate. With 14.7% of the total workforce is unemployed, this has left investors bearish towards the Greenback, although it was lower than the expected 16%.
This is the highest unemployment rate since the global financial crisis in 2008.
The real number behind the unemployed rate is much bigger since there are workers who did not file for unemployment due to hospitalization (COVID-19).
With the negative data news emerged from the U.S., could we see an appreciation of the EUR/USD next week?