Yahoo Finance EUR/USD Mid-Session Technical Analysis for June 5, 2020
The Euro is trading lower against the U.S. Dollar immediately after the release of the U.S. Non-Farm Payrolls report. Earlier in the session, the Euro climbed to a three-month high on Friday and was set for a third straight week of gains after the European Central Bank (ECB) expanded its stimulus program.
At 12:51 GMT, the EUR/USD is trading 1.1299, down 0.0035 or -0.31%.
The Euro fell after the latest monthly U.S. jobs report came in much better than expected.
Employment stunningly rose by 2.5 million in May and the jobless rate declined to 13.3% according to data Friday from the Labor Department that was far better than economists had been expecting and indicated that an economic turnaround could be close at hand.
Economists surveyed by Dow Jones had been expecting payrolls to drop by 8.333 million and the unemployment rate rose to 19.5% from April’s 14.7%.
The May gain was by far the biggest one-month jobs gain in U.S. history since at least 1939.
The jump in employment almost perfectly mirrored the 2.7 million decrease in workers who reported being temporarily laid off.
Leisure and hospitality workers made up almost half the increase, with 1.2 million going back to work.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, the price action suggests the EUR/USD may be forming a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.
The main range is 1.1496 to 1.0636. Its retracement zone at 1.1167 to 1.1066 is controlling the longer-term direction of the EUR/USD. This zone is also support. Based on the developing chart pattern, it is reasonable to expect a pullback into at least the Fibonacci level at 1.1167 over the near-term.
Daily Swing Chart Technical Analysis
Based on the early price action and the current price at 1.1299, the direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to yesterday’s close at 1.1334.
Bearish Scenario
A sustained move under 1.1334 will indicate the presence of sellers. If confirmed, we could see the start of a 2 to 3 day correction into at least 1.1167.
Bullish Scenario
A sustained move over 1.1334 will signal the presence of buyers. If this creates enough upside momentum then look for a possible retest of the intraday high at 1.1384. This is a possible trigger point for an acceleration to the upside.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
