Based on the technical indicators seen on EUR/USD’s 1-hour time frame, there are continuation forex signals for the strong downtrend. In fact, the pair has formed a bearish flag pattern, indicating that a breakdown would confirm more losses for this pair.
Looking at the Ichimoku Kinko Hyo lines would show why the pair is in for more declines. The green line recently crossed below the price, which is an early sell signal for short-term traders looking to jump in the selloff earlier than most retail traders. Price recently crossed below the blue line, which means that the forex signals for a downtrend are lining up. Aside from that, the red line is moving down, reflecting an ongoing market trend instead of ranging conditions.
EUR/USD Forex Signals
With that, EUR/USD might make a lot of movement during the upcoming US non-farm payrolls release. Bear in mind that the US economy is expecting to see stronger labor market gains of 200K for March, higher than February’s 175K increase in hiring. Upward revisions on the previous month’s reading might also be seen. Early labor market indicators for the US, such as the ADP non-farm employment change and the ISM manufacturing and non-manufacturing surveys, have supported this upbeat bias for the US NFP.
As for the euro, the ECB statement was more dovish than expected since Draghi admitted that the central bank talked about other easing options, including negative deposit rates and larger LTRO plans. The central bank didn’t change the benchmark rate for the meantime though.
The 1-hour EUR/USD chart shows a trend line on which any kind of pullback might hit a ceiling. A weak NFP reading might spark some dollar weakness, during which EUR/USD could bounce then possibly find resistance using the orange lines on the technical forex signals on the same time frame.
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