The momentum is clearly with EUR/USD moving higher in the wake of Chair Yellen’s speech in New York, which further reinforced the dovish stance taken at the FOMC meeting and press conference on 16th March, notes BTMU.
"We doubt even a positive jobs report will alter the near-term negative dollar sentiment given Chair Yellen herself has implied that incoming economic data is playing a secondary role to broader conditions in financial markets. While those conditions do continue to improve, the FOMC appear willing to wait a period before concluding whether the downside risks emanating from abroad have receded. A well-above consensus jobs report would be required to support the dollar at present.
Other than the jobs data tomorrow, we would highlight the release of the ECB Account of the monetary policy meeting on 10th March when the ECB announced its latest monetary easing measures. Any info that may indicate the potential or lack of potential for additional cuts to the deposit rate will be key for EUR/USD impact," BTMU argues.
"But for now, we certainly lean toward the potential for EUR/USD to break above the 1.1500 level over the short-term," BTMU projects.
BTMU turns bullish on EUR/USD around current levels seeing the pair trading in a 1.12-1.16 range in the near-term.
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