EUR/USD Holds Neutral Bias After NFPThe U.S. dollar has managed to regain some ground in the short term after several sessions of gains in EUR/USD. Currently, the pair is showing a downward move of just over 1%, following the NFP report, which showed 228,000 new jobs versus the 137,000 expected. This has slightly increased demand for the U.S. dollar in recent hours, as the market anticipates the possibility of higher inflation and, consequently, more restrictive Fed policy in upcoming decisions.
Uptrend
Since February 28, a strong upward trend has been in place, showing a clear buying bias in EUR/USD. So far, selling corrections have not been strong enough to break key trendline levels, making this the dominant formation to watch in the short term.
RSI
In the case of the RSI, oscillations have started to approach the overbought zone near the 70 level. Additionally, it is important to note that while EUR/USD has posted higher highs, the RSI has shown lower highs, reflecting a bearish divergence and signaling a potential imbalance driven by strong short-term buying pressure. This could eventually lead to downward corrections in the sessions ahead.
Key Levels:
1.1000 – Major resistance: This level remains the most relevant round-number resistance on the chart. Sustained price action above this level could reinforce bullish momentum in the short term.
1.07911 – Near-term barrier: This level is located near the 200-period moving average and could serve as a tentative zone for future selling corrections.
1.06132 – Distant support: Positioned around the 38.2% Fibonacci retracement, this level marks a key breakpoint that, if reached, could invalidate the current bullish structure.
By Julian Pineda, CFA – Market Analyst
