The common European currency showed some weakness against its American counterpart yesterday. The US Dollar gained value amid positive expectations concerning today's Non-Farm Payrolls report. Those expectations were supported by the ADP employment report. In particular, the amount of new jobs in the non-farm sector improved up to 281 000 in June.
By the end of the day, the currency pair dropped down to 1,3642, thereby setting the current local low. Today's trading activity started with a rally. EURUSD touched 1,3664 at the beginning of the trading day, Market Leader reports.
Apparently, today is going to be rich in major economic reports form the Eurozone and the USA, which are going to be key market drivers for today's currency markets.
First, the ECB is going to announce its interest rate decision, which will be followed by Mario Draghi's speech. During the press conference, the President of the ECB is probably going to comment on the bank's policies and decisions coupled with expectations and projections.
Apparently, such an even is likely to trigger volatility spikes. As you might know, last week's decision was to cut the benchmark interest rate from 0,25% down to 0,15%. So far, interest rates manipulation has been the only effective weapon for the ECB, which is aimed at curbing a strong Euro amid low inflation far below the central banks' target of 2%.
The ECB's interest rate decision will be followed by Non-Farm Payrolls indicating the state of affairs in the US labor market. This is a key report as well, so it may well trigger big price moves in the currency market as well. As a matter of fact, the report is published on Friday but this time they decided to release the figures on Thursday since tomorrow the USA is celebrating the Independence Day.
EURUSD
According to the comprehensive analysis conducted by Masterforex-V Academy, we can see a bullish tendency dominating in mid-term perspective, as the H1 chart shows us.
At this point, the price has completed a bearish reaction represented by wave 1.3699-1.3642, that was developed throughout yesterday's trading session. The reaction is roughly equal to 38.2 % Fibo of the 1.3575-1.3699 momentum.
Right in advance of the European trading session, the price formed a tight price range - 1.3642-1.3659, which was pinned through in the upward direction, without confirmation so far. So, the direction in which the price breaks and consolidates outside of the range, will determined the direction of the forthcoming mid-term tendency .
Support 1.3642 + 1.3645, 13639, 1.3610, 1.3582, 1.3565.
Resistance: 1.3659 + 1.3679, 1.3692 + 1.3699 + 1.3700.
