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EUR/USD Forecast 4 Apr 2016

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EUR/USD Forecast 4 Apr 2016
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EUR/USD showed mixed movement on a back of the US data

On Friday we received the long-awaited data on US labor market. It should be noted that the data were mixed. This caused the mixed movement of the pair EUR/USD.

Despite the increase in the number of new jobs above (215K v. 205K) and the wage growth (+ 0.3% vs. forecast of +0.2%), the unemployment rate increased from 4.9% to 5% in March.

First the pair EUR/USD demonstrated growth and was able to reach the high of 1.1437, but then dropped to a low of 13.31. These data don’t exclude the probability of the rate hike this year. It seems that the market has accepted the fact that the rates increase will happen twice this year.

Today Eurozone will present data on PPI and unemployment rate. The US data are not important today.

We expect reduction of the pair EUR/USD to the 1.1350 area on the back of a downward correction of the pair EUR/GBP.

How to trade

We would buy PUT options if the price falls below 1.1370.

Asset: EUR/USD
Direction: PUT
Target price: 1.1370
Close price: 1.1392
Expiry time: 20:00 GMT

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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