The EUR/USD currency pair is attempting to form a pattern known as a double bottom, using the lows of February 27th as a reference point.
The aim is to reach the high seen on March 7th. The bulls aim to surpass the high recorded on March 7th, thus putting an end to the discussion about a bearish trend.
In the upcoming period, the market bulls are seeking to achieve a robust breakout above the neckline, which occurred on March 7th, of the double bottom pattern.
This breakout will indicate a potential bullish trend reversal in the market. If successful, the move could have a measured upward target of testing the 1.0800 price level.
It is important to note that this analysis is not a guarantee of future market behavior. The traders should always conduct their research and analysis before making any trading decisions.
Some money market experts have said that it was a mistake to let yesterday’s closing price remain at its highest level. They said the same about the creation of a pattern of two consecutive lows at the same price point.
As the things stand, regarding the EUR/USD investors who had taken a bearish stance sold their positions at a price higher than yesterday’s peak.
In general, those who are bullish in the market desire a robust continuation of positive price movement today. They would also like to see a verification of the high that was reached on March 7th.
EUR/USD Poised for another Week of Growth
The pair is ready to mark the second consecutive gain. The EUR/USD pair is currently exchanging hands above its initial price at 1.0655. This indicates a rise of 0.73% for the day.
Following the recent report, the pair has reached a peak of 1.0700, the highest in three weeks.
The currency pair managed to avoid a setback and is currently on course to achieve its second consecutive weekly increase.
Previously, the EUR/USD was at its lowest point two months earlier this week.
Better Than Expected Employment Number Given the Pair Some Strength
According to the statistics published by the U.S. Department of Labor, the American economy created 311,000 jobs in February.
This outcome has exceeded the market’s projected amount of 205,000. But these numbers were significantly lower than that of January 2023.
Conversely, there was a deceleration in wage inflation as indicated by a decrease in the growth rate of the mean hourly compensation to 4.6%.
Furthermore, there was an unforeseen increase in the unemployment rate, which went up from 3.4% to 3.6%.
The uncertainty in the job report has impacted the Federal Reserve’s decision to increase the interest rate by 50 basis points at the March 21-22 meetings.
As the things stand the money market is full of positive and negative news.
The probability of a 50 basis points increase has decreased to approximately 40% from over 60% before the release of the non-farm payroll data.
Hence, the chances that the Feds increase the interest rate for an extended time have also been reduced.
This is another positive news for the basket of top currencies competing against the USD.
The U.S. Consumer Price Index findings are scheduled to be published next week. The CPI outcomes will also play a significant role in shaping the money market’s future.
Hence, it has been advised that investors should closely watch the sideways movements as well as analyze the technical indicators with an open mind.
As of this writing, a look at technical indicators depicts an interesting situation.
The short-term outlook for the EUR/USD has been positive. A look at the daily chart indicators is in the positive region. On the flip side, the price of the pair has recovered the 20-day SMA.
If the pair managed to cross the 1.0700 level will make a strong case for the pair to go further high. The next level of resistance of the pair is at around the 1.0800 zone.