FX.co ★ EUR/USD analysis and outlook for March 7, 2022

Hi, dear traders!

Last week, the US dollar continued to climb strongly against the European currency. On Friday, the US Department of Labor released a strong jobs report. Unemployment fell to 3.8% in February. Economists expected unemployment to decrease to 3.9%. 678,000 new jobs were created in the US economy, well above the projected 400,000. January's payroll data was revised upwards to 481,000 from the previously reported 467,000. The impressive labor market data completely jeopardized the efforts by bullish traders last week to reverse the pair upwards.

Weekly

Last week, EUR/USD closed below the key psychological, historical, and technical level of 1.1000. However, 1.1000 rarely served as support or resistance for the pair compared to 1.1060, 1.1030, or 1.1015. Below them lie other important technical levels: 1.0980, 1.0960, and 1.0930. It should be noted that the pair finished last week's session at 1.0932. According to the weekly chart, EUR/USD could fall towards the strong support level at 1.0636, which is also the pair's 2-year low. The red Tenkan-Sen line of the Ichimoku cloud thwarted attempts by euro bull to reverse the pair, sending it downwards. Nevertheless, despite the strong downtrend, it is likely to retrace upwards.

Daily

If EUR/USD retraces into the highlighted price zone, traders are recommended to observe its trajectory, as well as look for candlestick patterns at daily or lower timeframes. These patterns would allow opening short positions at favorable prices, because the pair is certain to sink further. The main trading strategy at the moment is opening short positions after EUR/USD retraces upwards and tries to retake 1.1000.

Good luck!