EURUSD: Key Support Holds After Key Data Releases, Further Recovery Remains Potential

EURUSD: Key Support Holds After Key Data Releases, Further Recovery Remains Potential
The EUR/USD pair attempted to push lower on Friday, broke below 1.1175 support area but whipsawed to the upside and closed higher at 1.1200 after failed to break 1.1120 key support. Of four high impact economic data from the US, two of them were good, two of them were bad. The NFP and unemployment rate came out better than expected while Average Hourly Earnings and ISM Non-Manufacturing PMI came out worse than expected.

Technically, the failure to take out 1.1120 support and a close back above 1.1175 suggests the bullish recovery is still alive and kicking with technical correction target lies at the trendline resistance, an area now runs from 1.1275 – 1.1250. That being said, bear in mind that the major bearish trend is still valid.

Immediate support is seen around 1.1175. A clear break below that area would retest 1.1120 key support area which need to be clearly breached to the downside to put an end to the current bullish recovery phase and confirm resumption of the major bearish theme at least testing 1.1050/00 region. On the upside, a clear break above the falling trendline would expose 1.1325 key resistance which will put the major bearish fashion in jeopardy.