Finding Key EURUSD Levels as Pair Breaks to 11-Year Low
- EURUSD consolidated between the 1.1500 and 1.1200 figures between late January to the end of February
- An eventual break lower pushed the pair to an 11-1/2 year low as US NFP and Unemployment data turned positive
- Want free access to the DailyFX Support/Resistance App? We are holding an Open House
EURUSD hovered between the 1.1500 and 1.1200 figures between late January through the end of February as Greece weighed on traders’ minds. Consequently, the average directional index remained below zero during this period indicating an absence of a clear trend. During such periods of consolidation, it can be handy for traders to use the DailyFX Support & Resistance Wizard app to identify levels where price can be expected to bounce or eventually break to transition to a new trend. This resource can also help traders by providing reference points to place stops and limits.
Referring back to EURUSD, the pair broke below Support levels established by the DailyFX Support & Resistance Wizard app despite Greece winning an extension of its bailout program last week. Since then, it has further declined to an eleven-and-a-half year low as the ECB is proceeded with a monthly €60 billion per month stimulus program on March 9th. And, to follow up, US labor data rallied the Dollar on Friday. The US economy added 295K jobs in February versus 235K expected, and the unemployment rate fell to a new 6-1/2 year low 5.5%. This data will likely test the Fed’s time frame for raising interest rates.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.