EUR/USD Loses 1.30 and continues to test double bottom

EUR/USD extends its drops below 1.30 on the excellent Non-Farm Payrolls report. The Untied States gained 236K non-farm jobs in February, significantly above the already elevated expectations. The unemployment rate fell to 7.7%, the lowest since December 2008.

Next target: 1.2960 – it has been hit, but the pair is moving slower around this line.

Update: Fitch downgrades Italy and EUR/USD makes another attempt at the now triple bottom – no success.

EUR/USD is now at the lowest level since December 11th 2013. It is important to note that in the past two Fridays, EUR/USD dipped below support but eventually closed higher. Will this happen again?

If the break is indeed confirmed, the next level is 1.2960 which was a double bottom in the past week.

The next significant level on the downside is 1.2880, which worked in both directions in the past. It is followed by 1.28, which was the bottom border of the long term 1.28 to 1.3170 range that characterized the pair’s trading.

If the pair bounces back, 1.3030 is very minor resistance, followed by 1.31 and 1.3130. For more levels, see the EURUSD forecast.

Here is another chart, showing the double bottom:

Also other currencies fell on the report. GBP/USD fell to fresh multi-year lows.