The rate continues to fall and now has reached the support line. As you can see from the Weekly chart, the rate has opened the week with a gap down, the pair is trading below the 23.6% retracement level. This pair remain bearish but we can have a pull back on short term from this level, the price will grow to test the 23.6% level and then will resume the downward movement.
Other support levels can be found at 1.3831 and lower at 1.3813. Tomorrow we can have high volatility after the US economic data. The Unemployment Rate is expected to decrease to 5.7% from 5.8%. The surprise could come from the NFP, this indicator is expected to decrease to 241k from 321k, if this scenario will happen, then the US Dollar will decline. The MACD indicator shows an oversold market on Daily chart. Is hard to believe that this downward movement will end here but as I’ve said we can have a recovery on short term, the question is when we’ll have a correction on US Dollar?
The nfp will create some volatility for sure if it is not as with estimates. The leading ADP jobs report came in at around the 241k point earlier in the week so is suggesting to me that the nfp could also surprise on upside.