Forex Trading: EUR/USD Daily Retracement Analysis

Following a terrible Non-Farm Payroll number out of the US on Friday (-524K, including a large downward revision) and unemployment rate (7.2%), we saw the USD get a strong bid against the Euro perhaps considering the fact that the worst of the economic downturn could be behind us with the large job cuts already coming through the system.

Revisiting last week’s EUR/USD daily retracement analysis  (10/28 low - 12/18 high), we see the pair broke lower but did not hit the 61.8% retracement level, but rather touched the level where we spiked to at the end of October (highlighted below). We will now look to 100-day moving average and 50% retracement area to provide some resistance as we perhaps move toward testing the October lows.

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