Jumps 120 Pips As NFP, EUR/USD Continues Up Again!

thecekodok

 The United States (US) NFP employment data report published last Friday has seen a depreciation of the US dollar.


Looking at the report, job gains in February rose to 311,000, beating forecasts of 224,000, but lower than the previous month's 504,000.


Average hourly earnings fell to 0.2% from 0.3%, while the unemployment rate, which was expected to remain at 3.4%, rose to 3.6%.


The overall gloomy data component has driven the decline of the US dollar and faded back the expectation of a 50 basis point increase in interest rates by the Federal Reserve (Fed) at the FOMC meeting this March.


Strengthening those expectations when the Silicon Valley Bank (SVB) crisis in the US experienced a collapse that was said to be caused by the effects of high interest rate increases.




Examining the price chart of the EUR/USD currency pair during the impact after the NFP, the price surged past the 1.06000 level to reach the target level of 1.07000 with around 120 pips daily increase recorded.


The 1.07000 level is a resistance for the price that has been immune to breaking through since the last few weeks of trading.



Resuming trading at the opening earlier this week, the price increase continued and finally managed to break through the 1.07000 resistance in the Asian session.


A higher move is expected towards the latest target level at 1.08000 for the price to record a new 4-week high.


But the situation can change and see the price fall again if the US dollar manages to strengthen again.


A further drop in price below the 1.07000 level will push the price back towards the 1.06000 concentration level.


Next, investors will examine the indicators to evaluate price trend changes that may occur again.


In addition to observing the development of the SVB crisis, the market is now looking forward to the release of US inflation data to continue evaluating the Fed's direction in setting their monetary policy.