The EUR/USD pair appears to have found a bottom at the 1.17 area as the market formed an inverse head and shoulders pattern. The NFP report from last Friday revealed that the U.S. economy added close to one million new jobs in March, sending the stocks higher and the dollar lower. If the trend continues, the chances are that the risk-on movement will extend for the rest of the trading week too.
Last Friday, the markets were closed due to the Good Friday holiday, and so the NFP report did not create the usual volatility. Therefore, starting with today, we may see what the report truly meant for the dollar.
The euro still suffers from the sluggish vaccine rollout in Europe, but things are about to change as the vaccination pace is expected to increase dramatically in the weeks ahead.
EUR/USD Technical Analysis
The pair formed an inverse head and shoulders pattern, and by the time the price broke above the neckline it also broke above the main bearish trendline. Bulls may want to remain on the long side, targeting the key 1.1950 area while having a stop-loss order at the 1.1700 lows.
On the flip side, if the market slips below the bearish trendline again, the risk is that the EUR/USD pair will form a new low.