EUR/USD created a doji candle yesterday, pausing the rally from the recent lows below 1.1250. As a result, today’s close is pivotal. The pair could revisit the key resistance of 1.1407 if the German employment and Eurozone CPI numbers better estimates. EUR/USD created a doji candle with long upper shadow on Thursday, signaling strong indecision in the market place. The common currency picked up a bid in Europe and jumped to a high of 1.1420, as the German 10-year bond yield hit three-week highs near 20 basis points, after the Eurozone’s biggest economy suggested a pick up in inflation. The move above 1.14, however, was short-lived with the dollar rising across the board after the US fourth-quarter annualized GDP came in at 2.6 percent, beating the consensus estimate of 1.9 percent by a big margin. The dollar demand pushed EUR/USD all the way back to its opening rate of 1.1370. The flat close with a long upper shadow has weakened the immediate bullish case. After all, that was the third straight failure to beat the 1.1407 (61.8 percent Fibonacci retracement of 1.1514/1.1234). That said, the 5- and 10-day moving averages (MAs) are still trending north, indicating a bullish setup. Further, the rising wedge breakdown on the 10-year US-German yield spread, confirmed earlier this week, is still valid So, a re-test of 1.1407 cannot be ruled out, especially if the German jobs data, due at 08:55 GMT and the Eurozone preliminary CPI number, scheduled for release at 10:00 GMT, beat estimates by a big margin. The bullish case, however, would strengthen only if the pair closes today above 1.1407. The breakout will likely elusive if the US personal spending, due at 13:30 GMT, betters estimates, lifting treasury yields higher. On the downside, traders need to keep an eye on 1.1359 (low of yesterday’s doji). A close below that level would imply an end of the rally from the Feb. 15 low of 1.1234. As of writing, EUR/USD is trading largely unchanged on the day at 1.1370. EUR/USD Technical Levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USTR: US seeking to cut tariff, non-tariff barriers in UK trade deal – Reuters FX Street 4 years EUR/USD created a doji candle yesterday, pausing the rally from the recent lows below 1.1250. As a result, today's close is pivotal. The pair could revisit the key resistance of 1.1407 if the German employment and Eurozone CPI numbers better estimates. EUR/USD created a doji candle with long upper shadow on Thursday, signaling strong indecision in the market place. The common currency picked up a bid in Europe and jumped to a high of 1.1420, as the German 10-year bond yield hit three-week highs near 20 basis points, after the Eurozone's biggest economy suggested a pick up… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
