EUR/USD Mid-Session Technical Analysis for March 8, 2019

The Euro is trading higher on Friday, shortly before the release of the U.S. Non-Farm Payrolls report at 13:30 GMT. Today’s report is expected to show the economy to have added 180,000 jobs in February, and the unemployment rate is expected to drop by a tenth to 3.9 percent. Wage growth is expected to strengthen, rising 0.3 percent. In January, the economy added 304,000 jobs and wage growth rose 0.1 percent.

At 12:37 GMT, the EUR/USD is trading 1.1215, up 0.0022 or +0.19%.

In the Euro Zone on Thursday, European Central Bank President Mario Draghi said the European economy was in “a period of continued weakness and pervasive uncertainty”. Conditions in the Euro Zone were perceived as so bad that the ECB:  pushed back the timing of its first post-crisis interest rate hike to 2020, cut its economic forecasts and launched a new round of cheap bank loans.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1176 will signal a resumption of the downtrend.

The EUR/USD may have found support at the major Fibonacci level at 1.1185. This price is controlling the longer-term direction of the Forex pair.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD on Friday is likely to be determined by trader reaction to the Fibonacci level at 1.1185.

Bullish Scenario

A sustained move over 1.1185 will indicate the presence of buyers. This could trigger the start of a short-covering rally. However, the U.S. jobs report would have to be a complete miss to drive the EUR/USD into its nearest Gann angle target at 1.1300.

Bearish Scenario

A sustained move under 1.1185 will signal the presence of sellers. Crossing to the weak side of the downtrending Gann angle at 1.1180 will put the EUR/USD in a bearish position. Taking out yesterday’s low at 1.1176 could trigger an acceleration to the downside with the June 20, 2017 main bottom at 1.1118 the next major downside target.