Last Friday, we witnessed important data on the US economy. The NFP report was released. The report on the country's labor market turned out to be a positive surprise, with data surpassing analysts' forecasts and the unemployment rate decreasing more than expected.
The evolution of the recovery of the US labor market has been a reason for concern on the part of investors and the Fed has been cautious about its evolution.
However, the data for the month of July may start to give good perspectives on the recovery of the US economy and, therefore, the risk of the removal of the stimulus to the economy also begins to emerge.
إبدأ بالإستثمار اليوم أو تدرّب على حساب تجريبي
إنشاء حساب حساب تجريبي تحميل تطبيق الجوال تحميل تطبيق الجوالAs a result, we saw a more shaky reaction from the US indices, while the US dollar appreciated and commodities such as gold were also under downward pressure.
Nevertheless, we will use technical analysis to analyze the behavior of the EUR/USD pair in recent times.
Technical Analysis EUR/USD: Daily time frame chart.
On the daily chart, we can see that the price is currently close to the recorded lows at the end of March 2021.
Furthermore, we can see that we may also be facing a double top where the price is currently testing the neckline zone.
In case sellers manage to break below that zone, the bearish move could intensify further after the break in the graphical structure's neckline.
EUR/USD, daily time frame chart. Source: xStation
On the other hand, the dollar index (DXY) is starting to show signs of reversal. On the daily chart we can see that we may be facing an eventual double bottom.
Noteworthy is the important role the 50-period EMA has played in keeping the price higher on the USDIDX.
USDIDX, daily time frame chart. Source: xStation 5
U.S dollar is the best major performer, while the CHF is the worst performer among the fx majors.
Source: currency-strength.com
Henrique Tomé, XTB Portugal
