After retracting in the Asian session amid a disappointing German Retail Sales (-0.4% in February), the euro continued its progression on Thursday and completes the formation of a rising wedge in the hourly chart.
The euro progressed when the U.S Unemployment Claims came out slightly better than expected at 439K for last week. Later in the day, a positive ISM Manufacturing PMI (75.0) triggered a push in equities which allowed the EUR/USD to reach its highest level this month at 1.3587.
Looking at the hourly chart, we see the completion of a rising wedge. The price bounced three times off the support trendline (S1) while continuously being capped by a resistance line (R1). The next most probable move is another rebound to the downside for a re-test of 1.3500.
This could very well happen as markets wait for Friday’s very important U.S Non-Farm payrolls and unemployment rate. And with European and Asian banks closed, the lack of liquidity could trigger the move very early.
1.3500 continues to be a pivotal level for the euro. Better than expected payroll data could push the dollar and trigger a set of stop loss orders just below that level.
Meanwhile, the USD/JPY carved a year-high by pushing above 93.76, the last high achieved in early January.
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