Daily Technical Update EUR/USD Assessing Non-Farm Payroll Data Reaction

[cmsfx]

Fan Yang \ 9:35 AM EST \ December 4th, 2009


EUR/USD Assessing Non-Farm Payroll Data Reaction


* 4H and 1H: The pair had 3 upswings then one downswing to end the week near where it opened, at about the 1.4970 level. The downswing was apparently the reaction to the better-than-expected jobs data from the US. (US Non-farm Payroll Report Surprises…)
* This very bearish reaction for the EUR/USD. The pair fell fom 1.5070 to 1.4940 in an hour. Although dramatic we can see in the 4H time-frame that the market has yet to test the 1.4900 area (78.6% retracement and rising support line).
* The strength of the decline warns against looking for early reversal signals.
* Observe the 1.4900 area as it will be an important support next week. If broken and confirmed then as resistance, a medium-term projection to the 1.4600 can be considered, but 1.4800 area will be short-term support.
* On the otherhand a bounce from the rising support line projects a rally to 1.5300 in the medium-term.

Fan Yang
Currency Analyst,
Commodity Trading Advisor
Via fxtimes.com

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