Forecast for EUR/USD on April 6, 2020

EUR/USD

The main event on Friday was the release of data on employment in the US. The figures came out worse than expected, but after the data on applications for unemployment benefits, investors were ready for anything. In the non-agricultural sector, 701,000 jobs were lost – this is a historical record for this indicator. The forecast was at -100 thousand. The overall unemployment rate rose from 3.5% to 4.4%, with an expectation of 3.8%. Without emotion, investors continued to buy the US currency, which justified our strategic idea of buying the dollar in any statistical data. The difference can only be in the subsequent interpretation of the ongoing strengthening of the dollar.

Data on the eurozone will be published today, which can already become direct support to the euro bears: the volume of industrial orders in Germany for February is expected to decrease by 2.4-2.7%, the Sentix index of investor confidence in the eurozone for April is expected to be -30.3 against -17.1 in March.

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On the daily chart, the euro is falling in the planned mode to the first goal of 1.0625 – to support the embedded line of the price channel. Indicators show only the continuation of the downward trend.

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On the four-hour chart, the price was consolidated under the MACD indicator line – there was a change in the short-term trend to a downward one.

Trading recommendation: after overcoming yesterday's low of 1.0773, sell with a take profit above 1.0625, stop loss above today's high.

The material has been provided by InstaForex Company - www.instaforex.com