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Elliott Wave Analysis: EURUSD turns bullish despite positive U.S. non-farm payrolls

Despite the release of upbeat U.S. non-farm payrolls data, the U.S. dollar slipped to fresh six-month lows against other major currencies on Friday as investors turned their attention to the French presidential election this weekend.

The U.S. Labor Department said the U.S. economy added 211,000 jobs in April, beating expectations for an increase of 185,000. In the meanwhile, the unemployment rate fell down to 4.4% last month from 4.5%, compared to expectations for a rise to 4.6%. The report also showed that average hourly earnings rose 0.3% in April, in line with expectations.

EUR/USD had strengthened broadly after polls declared that Emmanuel Macron won a TV presidential debate against Marine Le Pen late Wednesday, increasing the likelihood of a Macron victory at the runoff vote on Sunday.

In terms of technical analysis, EUR/USD’s intraday bias remains on the upside for the moment and may continue this trend in the coming several trading sessions because technical indicators regained the upside within positive territory.

EURUSD is now in the third leg of the Zigzag (ZZ) pattern for wave 2 of (5). The key target at the end of the week is 50% Fibonacci Retracement of 1.1713 to 1.0340 at 1.1026. The next target in the week to come is 61.8% Fibonacci Retracement at 1.1189. I expect this strong resistance will limit the current corrective upside and lead to a short term potential reversal after this upside corrective wave finishes.

By Jack Huyn

Disclosure:
Please be informed that information I provide is for educational purposes only and not intended as investment advice. Information and analysis above are derived from utilising methods believed to be reliable, but I cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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