EURUSD Breaks Through Important Support

The Euro has moved lower on the back of dollar strength as the market awaits in anticipation of bigger news in the form of NFP that is scheduled to be released later in the day. The euro has moved through some of the major supports and thi is likely to put the euro bulls into a lot of pressure as we head into the release of the news.

Euro Under Pressure

The dollar has been strengthened on the back of easing of fears about a trade war but it has to be noted that late in the day, the Trump government is mulling tripling the tariffs that have already been imposed on China. This shows that they are not going to back down on their plan and this brings into the fore the question of fear and uncertainty in the markets once again. We do not know in which direction and how the problem is going to escalate in the coming days but the traders need to be aware.

The euro has also moved into the backfoot as the data from the Eurozone over the last few weeks has not shown the strength that we were seeing towards the end of last year. The incoming data has shown signs of weakness and this has led to the belief that we may also be looking at a situation where the ECB would have to delay some of their major decisions which would in turn mean that the tapering of the QE and its end could be delayed.

Looking ahead to the rest of the day, it is going to be a quiet early half of the day with a lot of volatility likely to come up later in the day when the NFP data along with the average earnings data getting released during the US session.