Forex Marketz Daily Forex News – Fully Markets Update
What goes up must come down. The euro currency is trading near a three month low price point against the U.S. dollar after market sentiment soured and Forex traders moved into safe haven asset classes.
Looking at the EUR/USD currency exchange rate on the above daily MT 4 price chart, there are a couple of bearish technical signs driving the euro currency towards a three (3) month low price point.
Firstly, there is the bearish flag breakdown and then the appearance pf a marubozu candlestick, highlighted on the chart. This is an indicator of how strong the bearish sentiment is in this benchmark Forex market. This has also confirmed that bearish flag breakdown.
Today, the United States Department of Labor is publishing key monthly labor data. This includes the February non-farm payroll (NFP) report, February’s unemployment rate, monthly hourly average earnings and the February labor participation rate. This is the headline event that will cause most of the price action volatility for both the euro currency and the American dollar.
The European Union is also releasing some economic data. Germany will publish monthly factory orders and Italy is releasing monthly retail sales. France is publishing their monthly trade balance. The United Kingdom will release their monthly Halifax housing price index (HPI). Canada will publish their monthly Ivy purchasing managers’ index (PMI).
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at price action with the EUR/USD currency exchange rate, the appearance of the bearish marubozu, which is a big red candle with little or no wicks, is indicative of how strong the sellers are in this Forex market. On 3 March, the EUR/USD dove lower and validated a bear flag.
This was a signal that this currency exchange rate was continuing the sell off from the 6 January high price at 1.2349. The doors are now open to challenge the downside barrier at 1.20 and lower.
On the upside, a close above the lower high at 1.2243, which came into play on 25 February, is needed to bring the buyers back into this market for a reversal higher.
