EUR/USD Decisively Breaks Below 200-day SMA Support

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Updated: Aug 22, 2015, 09:00 GMT+00:00

It was mentioned in previous report that that EURUSD seems vulnerable to further weakness initially towards 200-day SMA support. On Thursday, EURUSD

It was mentioned in previous report that that EURUSD seems vulnerable to further weakness initially towards 200-day SMA support. On Thursday, EURUSD currency pair gave up all of its gains registered on Wednesday and fell below the 200-day SMA support to 1.3110 after the release of better-than-expected ISM Non-manufacturing PMI data from the US.
On Friday, EURUSD currency pair is holding above 1.3100 support zone but still remained below the 200-day SMA and is currently quoting at 1.3128 from 1.3121 on Thursday.
Investors now look ahead for the biggest event of the week, US monthly jobs report preceding the two-day FOMC meet on September 17 and 18 and is likely to play a vital role in the Fed Reserve’s decision to reduce the pace of its $85 billion monthly asset purchases program.
A stronger-than-anticipated employment data from the US could drive USD to build on its recent strength against EUR and EURUSD currency pair seems more likely to weaken further towards a very important psychological support at 1.3000 level. Intermediate support for the currency pair is pegged near 1.3060 area on the downside.
Alternatively, should there be a big disappointment from US jobs report, the pair seems to recover back to its previous important support, turned resistance, near 1.3180 – 1.3200 zone.
It should, however, be noted that only a decisively pull-back above 1.3300 important resistance would probably negate the short-term bearish outlook for the currency pair.

Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/

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