EUR/USD hints a change to the downside

EUR/USD peaked on Thursday at 1.2242, its highest level in over a month, but trimmed gains on Friday to finish a second consecutive week unchanged just above the 1.2100 level. In the daily chart, the pair is giving signs of changing course, screaming reversal, FXStreet’s Analyst Valeria Bednarik briefs.

Key quotes

“The upcoming week will be a busy one, as Markit will publish the final versions of its February PMIs for the EU and the US. The official US ISM Manufacturing PMI will be out on Monday, foreseen at 58.6, while the services index will be released on Wednesday and is expected at 58.5.”

“Germany will release the preliminary estimates of February inflation, January Retail Sales and Factory Orders for the same month, all of them growth-related numbers. The EU will also release its inflation estimates and January Retail Sales.”

“On Friday, the US will publish the February Nonfarm Payroll report. At the time being, the market expects a 110K increase in job creation and an unemployment rate of 6.4%.”

“The 1.2060 level is the immediate support ahead of the monthly low at 1.1951. To the upside, euro/dollar will likely meet sellers around 1.2170, but once the latter, 1.2240 comes next. Once above this last, 1.2349 is the next bullish target.”