Monday, August 07, 2017

EUR/USD Is Developing Half-Heartedly After The NFP Data On Friday

Today is Monday and on the economic calendar there are no important news that could serve as a catalyst for the market, so as usual it is developing half-heartedly, especially in comparison to the strong volatility on Friday during and after the announcement of the US NFP data.

After dropping with 165 pips today EUR/USD is moving within a tight range of about 40 pips, and on the smaller time frames it is obvious that the move to the upside is corrective.

If we examine the H4 time frame we would see that the pair will test the low from Friday at 1.1728, and in case it does break out below it I think it could drop to 1.1690 – 1.1670.

At this stage I think that another rally is less probable, but in case the pair does move to the upside I think the target will be around 1.1830 – 1.1850 +.