The EURUSD currency pair after establishing a minimum at the level of 1.0630 in March last year moved in an upward trend to reach the maximum at 1.2360.
- bullish engulfment on D1
- payrolls below expectations – dollar loses
This year saw systematic declines on EURUSD, until Friday at 14:30, when the US payrolls were released. The US non-farm payrolls (NFP) are published monthly by the US Bureau of Labor Statistics. January data turned out to be lower than expected, the US dollar started to lose.
The euro began to recover and ended the day at the level of 1.2050, forming an upward outside bar.
Looking at the D1 chart we can see the Head&Shoulders formation, Friday’s trading reached the neckline, testing it from below.
It is too early to make a judgment on the direction of the price today, but it is worth monitoring the price behaviour at the level of 1.2050, because its successful overcoming or rejection may determine the direction for the next few sessions. By successful I mean closing the Monday candle above the mentioned neckline or below 1.1950, which is the minimum of the bullish outside bar formation.
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