EUR/USD recap for 08.01.2016
The Euro is very resilient this first trading week of 2016. 1.07103 proved quite the support and pushed the price from there to 1.09330 in two days, support be dovish FOMC comments and fair economic data from Europe. Yesterday on the US data the euro dropped from 1.08703 to 1.08025 for 67 pips. Price got inside the buy zone at 1.08067 on the hourly chart and climbed back with strong support from the bulls after the better-than-expected unemployment claims. Though the market first focused on the news from the UC, but with flat unemployment rate and wors-than-expected average hourly earnings, as mentioned, bulls quickly swooped in and boosted the price towards 1.09210 for a close at 1.09191. From the lowest price towards the close price, the euro made 117 pips movement.
Everything depends if bulls now remain in control, determined control, and manage to keep the price above 1.08793. Test 1.09665 and successfully breach it for a move beyond towards 1.10483 and 1.11569.
On the bear side - if they manage to suppress the price bellow 1.08793, test 1.08189 and breach it, the price will drop to 1.07103 and 1.06499. From there, the bears will try to push the price down to the strong buy zone at 1.05666 (again) and will try to breach it. A great battle indeed between the bears and bulls for supremacy and for the now the USD bears are losing and it is costly.