EUR/USD: bears taking control below trend-line support, NFP next in line

• EUR/USD: breaking to the downside below trend-line support.
• EUR/USD: bears in control ahead of nonfarm payrolls, what to expect?

EUR/USD finished the day in Europe down -0.02%, (DXY 0.06%), as the dollar takes up a bid ahead of nonfarm payrolls while markets look through the trade war angst and prefer to conclude ahead of the fact that there will be negotiations before tariffs kick in. Currently, EUR/USD is trading at 1.2237, down -0.33% on the day, having posted a daily high at 1.2291 and low at 1.2218.

EUR/USD was muted in Asia between at 1.2277/90 range ahead of key European PMIs that came in softer than expected where the range widened out to 1.2249-90 on the session, (supported just ahead of Mar 20/21 matching lows and the 30-day lower Bollinger band).  In respect to the EZ data today, the manufacturing and services activity dropped sharply from cyclical multi-year highs. However, activity remains solid in historical terms and consistent with 0.6% GDP rise in Q1 2018. 

The Eurozone economic activity remains robust in March

In the North American session so far, that level of support has been broken with the dollar extending its range in the DXY between 90.071 - 90.594 with a pick up in the benchmark 10yr yield's range widening between 2.8027% - 2.8320%.

Nonfarm Payroll preview: get ready for a US employment disappointment

EUR/USD levels

trendline support at 1.2230-40 has been taken out and now eyes are down to the 1.2180-1.2200 levels as next support. 1.2155 is a key level where the price rallied from on the 1st March. The RSI is biased to the downside while the market is breaking lower out of the consolidative phase. For now, however, the price still remains sandwiched between its 2017-2018 uptrend at 1.2115 and the 2007-2018 downtrend at 1.2651. From a broader perspective, however, the weekly sticks are still bullish above 1.2206.