FX.co ★ Trader's Diary: EUR/USD on 02/05/2020, All in favor of the dollar

Here are several factors in favor of the dollar:

1. The coronavirus epidemic in China poses a risk of global recession, and the dollar looks beneficial as a defensive asset.

2. US Economy News: The ISM Industrial Index for January came unexpectedly above 50. This means that the industry began to grow again after several months of stagnation, while industrial orders showed an increase of 1.8% which is above the forecasts.

3. The labor market remains strong in the USA, and we will receive new data today at 13:15 UTC.

Forecast 160K and 170K

EURUSD:

We sell the euro with a break down at 1.0990.

In case of a u-turn, we buy from 1.1100.