FxWirePro: EURUSD upside capped by 23.6% fib, good to sell on rallies

EURUSD recovers slightly after hitting 20-month low on Friday.The pair jumped nearly 80 pips from the bottom on weak US jobs data. US economy has added 20000 jobs in month of Feb compared to forecast of 180K and unemployment rate is at 3.8% vs 3.7%.Overall trend is still weak on ploicy divergence between US Fed and ECB.The ECB kept its rates unchanged and announced some dovish policy measures. It has trimmed growth forecast from 1.7% for 2019 to 1.1%. The central bank said it would introduce a new set of stimulus measure TLTROs new round of cheap loans. It hits high of 1.12589 and is currently trading around 1.12373.

The pair’s upside capped by 1.12589 (23.6% fib) and any break above confirms minor bullishness. Any break above will take the pair to next level 1.1300/1.13245 (Mar 7th high). Any violation above 1.13245 targets 1.14200.

On the lower side, near term support is around 1.11700 and any decline below will drag the pair to next level till 1.1130/1.0870.

It is good to sell on rallies around 1.1250-55 with SL around 1.1305 for the TP of 1.0875.