Will NFPs Extend the EUR/USD's ECB Selloff to Break 1.3000?
The European Central Bank (ECB) cut rates and subsequently spurred the EURUSD's sharpest decline in two weeks. However, technical traders will recognize that EURUSD has managed to hold resistance at 1.3050; EURGBP at 0.8400 and EURJPY at 127.50. As meaningful as the ECB's move was, it may not carry the necessary influence to jump start a new bear trend for the shared currency. Then again, we may yet see the critical breaks and trend development for pairs like EURUSD and EURJPY depending on how the final top tier event risk this week prints. The influence that the US labor data (NFPs and unemployment rate) has over volatility and the Fed's QE3 effort means traders shouldn't take their eyes off the charts. We cover the potential in this event risk in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.