Is the EUR/USD to re-test 1.1000 if NFP’s are solid?
Source: Economic Events June 5, 2020 - Admiral Markets' Forex Calendar
While the EUR/USD kept its bullish momentum after the sustainable break above 1.1000, which has laid the path up to 1.1200 as an initial target, so today could be the starting point of a corrective move back towards 1.1000.
This could be driven by today's Non-Farm Payrolls report. While the data is expected to come in at -8 million, Wednesday's ADP employment report leaves some room for optimism: while private businesses in the US fired 2.76 million workers in May, figures nevertheless beat the market forecasts of a 9 million drop.
Still, the EU commission's proposal of a 750 Billion-Euro fiscal stimulus package with 500 billion Euro in grants and 250 billion in loans can be considered a first step toward a transfer union, leaving the Euro with an overall bullish tendency. That might be especially true, after the ECB boosted the size of its PEPP program yesterday to 1.35 trillion Euros with being set to run through at least the end of June 2021.
That said, a corrective move in the EUR/USD finds a solid support and potential Long-trigger around 1.1000, the breakout region, with the overall target above 1.1200/30 around 1.1400/50 staying active.
Source: Admiral Markets MT5 with MT5SE Add-on EUR/USD Daily chart (between April 5, 2019, to June 4, 2020). Accessed: June 4, 2020, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2015, the value of the EUR/USD fell by 10.2%, in 2016, it fell by 3.2%, in 2017, it increased by 13.92%, 2018, it fell by 4.4%, 2019, it fell by 2.2%, meaning that after five years, it was down by 7.3%.
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