The EUR/USD is trading in a wide range below 1.0950 during European hours on Monday. This activity triggers an extension of a sideways move against the US dollar. Despite trading consistently defensively last week, the dollar has remained firm. Investors Investors are currently hesitant to place any bets on the major currency, awaiting the release of CPI data in the US, scheduled for Tuesday, March 12.
The EUR/USD reached its highest levels since early January on Friday, above 1.0980, although it reversed direction some time later during the US session to close the day with slight losses. However, the EUR/USD was up nearly 1% last week, and was just below 1.0950 at the start of the new week.
It is worth mentioning that data released last Friday in the United States regarding Non-Farm Payrolls (NFP) increased by 275,000 during the month of February. These numbers exceeded market expectations of 200,000, but failed to boost the dollar and increase its value. Another piece of data released last week showed that the unemployment rate increased from 3.7% to 3.9%, although the activity rate remained at 62.5%.
Meanwhile, the yield on the 10-year US Treasury bond lost nearly 4% after the report compared to February and caused the dollar to continue to lose ground against the other heavy currencies in the market. However, it is worth noting that investors taking profits before the weekend began helped the EUR/USD find a point of support against the dollar
Monday’s macroeconomic data releases will have a major impact on the currency market. It is important for investors to manage their trading risk with good risk management.
Daily technical analysis EUR/USD March 11th
EUR/USD could strongly test the immediate resistance level at 1.0950.
Likewise, a break above the eight-week high of 1.0981 could take the EUR/USD pair to levels where the psychological barrier of 1.1000 is. The retracement zone could be at 1.0913 and its psychological level could be 1.0900. At the moment, the EUR/USD is without any major news from the USD. Surely, tomorrow with the scheduled events in the United States a totally different behavior will be evident, since generally any data published either in the Eurozone or the United States usually directly affects the price of the pair.
If it surpasses the established maximum levels, the EUR/USD pair could find bullish momentum and reach the psychological barrier of 1.1000. If this psychological barrier is breached, it could touch the January highs of 1.1038.
Regarding a downward movement, the EUR/USD could find support at 1.0913 and its psychological level could be at 1.0900. If it breaks these levels, the main support the pair could find at lower levels would be 1.0850.
