Friday’s NFP report should support a rate hike in March; even though the NFP missed expectations unemployment is now below 4.9% and the average hourly earnings have risen more than expected. However, for the moment, the market is not pricing in any rate hike and this could lead to a higher EUR in the short term.
Technically, the EURUSD over the last 3 months is in an uptrend since creating a series of lower bottoms and higher tops from the December 1.0520 lows. I spot a bullish symmetrical triangle (continuation pattern) December 29th High (1.0990) – February 1st low (1.0814), and current price is above its long term Moving Average.
My conclusion for the EURUSD pair supports long positions above 1.1060 for targets within the 1.1300 – 1.1360 area.
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Senior Currency Strategist
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