The bullish rally of the price on the daily fiber chart slowed down , after a very favorable week for the Dollar. Last week's NFP publication showed an increase of 517 thousand jobs against a market consensus of 185 thousand while the unemployment rate fell to 3.4% which is a 53 -year low. The non-manufacturing PMI rose by 6 points reaching 55.2 which indicates that the non-manufacturing sector in the States is expanding further supporting the greenback. On the other hand the declining inflation in Europe (8.5% announced on Feb. 1st against a previous 9.2%) and the double hike in interest rates from the ECB were not enough to support the Euro against the bullish news of the Dollar.
On the technical side the price has been trading at a very aggressive bullish momentum for the whole fourth quarter of 2022 and in early 2023 and found resistance around the $1,10300 which is also the upper band of the Bollinger bands. After breaking below the 20 day moving average the price is currently trading around the $1,07700 which is just above the lower band of the Bollinger bands and also the 50 day moving average. At this point in time the support level lies around the $1,06800 which consists of the 23.6% of the daily Fibonacci retracement level and also just below the 50 day moving average.
The Stochastic oscillator is showing extreme oversold levels and in combination with the fact that the 50 day moving average is still trading well above the 100 day moving average it is possible to see a continuation of the bullish momentum in the following sessions given that the 23.6% of the Fibonacci proves to be sufficient support area.
On the technical side the price has been trading at a very aggressive bullish momentum for the whole fourth quarter of 2022 and in early 2023 and found resistance around the $1,10300 which is also the upper band of the Bollinger bands. After breaking below the 20 day moving average the price is currently trading around the $1,07700 which is just above the lower band of the Bollinger bands and also the 50 day moving average. At this point in time the support level lies around the $1,06800 which consists of the 23.6% of the daily Fibonacci retracement level and also just below the 50 day moving average.
The Stochastic oscillator is showing extreme oversold levels and in combination with the fact that the 50 day moving average is still trading well above the 100 day moving average it is possible to see a continuation of the bullish momentum in the following sessions given that the 23.6% of the Fibonacci proves to be sufficient support area.