The currency pair went upwards last week due to the short-term USD weakness. However, EUR/USD failed to break out the resistance at 1,1068 because of Friday’s US Labor Market data.
Friday’s data was mixed. Average Hourly earnings increased for 0,4% and this data supported the US dollar. As for the negative effect, US ISM Manufacturing PMI was below 50, which negatively affected USD.
EUR/USD stays close to the resistance and we have two reverse signals, provided to us by the candlestick analysis. It is possible to open short positions placing stop losses above the resistance area at 1,1068. As for the targets, it is possible to look for 1,0870. However, there is one important aspect to pay attention to. We have a downtrend channel since June 2019 and we advice to pay attention to its lower support in order to make targeting more precise.
