By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
On Monday, February 10th, EUR/USD is trading at 1.0955. The European currency is slightly correcting but still moving close to the lows of October 2019.
Because of the Chinese coronavirus story, the demand for risky assets remains quite cautious.
The January statistics on the employment market published last Friday by the USA were in favor of the USD. For example, the Non-Farm Employment Change showed 225K after being 147K and against the expected reading of 163K. The Unemployment Rate got a little bit worse as it increased up to 3.6% after being 3.5% the month before.
The Average Hourly Earnings added 0.2% m/m, which is a bit lower than expected (+0.3% m/m), but better than in December (+0.1% m/m).
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In the H4 chart, EUR/USD has reached its predicted downside target at 1.0955. Looking at the fifth structure of the descending wave, we may assume that the price may continue falling with the key target of this entire wave at 1.0927. Possibly, today the pair complete it and then start a new wave to the upside to reach 1.1010. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving below 0 inside the histogram area. The line is expected to leave the area and grow to break 0. After that, the instrument may boost its growth on the price chart.
As we can see in the H1 chart, EUR/USD is forming a narrow consolidating range below 1.0955. Today, the pair may break 1.0940 and then continue falling towards 1.0935. Later, the market may return to 1.0940 to test it from below and then start another decline to reach 1.0927 and finish this downtrend. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving above 80 and may resume falling soon. After breaking this level, the indicator may move downwards to reach 50, thus confirming further decline of the price towards its key target.
Disclaimer
Any predictions contained herein are based on the authors' particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.