Last week, currency pair rallied over 130 pips on a wave of optimism about the American economy and labor market well-being. However, Friday’s BLS employment report surprised all with neutral results. Which is worse, indicators based on personal consumption (PCE) fared below expectations, together with the most important reading for FED – PCE inflation. It returned to the 0.1% m/m level which is not satisfying for Federal Reserve.
Technically, pair gave a sell signal yesterday and today decreases continue below the pivotal level. Currently, the price fights to break below the support (3-day low and Pivot S1). Considering the letdown last week, we should look at old resistance 102.20-102.00 along with Pivot S3 (101.90).
If the price goes upward, it has to break above 102.62 (pivot) and key Pivot R1 (102.85). Further resistances can be found near latest rally top (103) and Pivot R2 (103.11).
The above analysis is one in a series of analyzes prepared by Comparic team in collaboration with XM broker. Other analyzes can be found every day on XM’s site. Open real XM account or try DEMO version for free. Promotion – 30% bonus up to $10,000!