Solid U.S jobs numbers stunned to the upside, with the economy adding 295K new jobs on Friday, and the unemployment rate falling to 5.5%. This job report weight comes from the fact that it encourages the Federal Reserve (Fed) to increase the interest rate, speculations that the Central Bank can act as soon as April, from previous date in June.
On the economic agenda this week we have the Eurogroup meeting and the industrial production in January from the Euro Zone with a previous number of -0.2%. On the other side of the Atlantic we will have from the U.S the wholesale inventories that are estimated to rise from 0.1% to 0.2% and the retail sales in February, with a previous number of -0.8%.
EURUSD plunged fast and hard on Friday’s session with a wide range day of 195 pips and closed near the low of the day. The pair is still in a bearish phase and trading well below the 10-day moving average. The stochastic in showing an oversold market but even with the pair well into oversold territory, we should not fight the strong downward trend.
Expecting downward move to a Fibonacci extension at 1.0587 on a break below previous day low at 1.0838 (scenario 1).