11.03.201912:44 Forex Analysis & Reviews: EURUSD: Weak data on the US labor market is not a reason for concern

The euro ignored weak German data and continued its upward correction against the US dollar, despite warnings from the European Central Bank about a possible slowdown in economic growth at the beginning of this year.

Weak German data once again points to the fact that the EU economy is gradually slipping into recession.

According to the report of the Federal Bureau of Statistics of Germany, orders in the manufacturing sector of Germany declined, but the data for December were revised upwards. Thus, orders in the manufacturing sector in Germany in January fell by 2.6% compared with the previous month, while economists had expected an increase of 0.5%.

In December, orders rose by 0.6% compared with November, whereas earlier orders were reported to fall by 1.6% in December.

The current showed orders once again point to the continuation of a slowdown in the pace of activity in the flagship economy of the eurozone at the beginning of this year.

Already in the second half of the day, buyers of risky assets took advantage of the moment and continued to open long positions in the euro after the release of a weak report indicating that the number of non-US jobs increased in February this year, but turned out to be much worse than economists' forecasts.

According to the US Department of Labor, the number of non-agricultural jobs increased by only 20,000, while economists had expected an increase of more than 180,000. The unemployment rate reached a record low of 3.8% in February, compared to 4.0% in January. Economists had expected unemployment to be 3.9%.

As for the technical picture of the EURUSD pair, further growth will be limited by a large resistance level in the region of 1.1260, from which sellers of risky assets will return to the market. However, a breakthrough of this range may lead to a reversal of the downward trend. A more likely scenario for the pair will be a rebound from the resistance of 1.1260 with an update of a minimum of 1.1200. Only from there will real buyers return to the market, betting on further euro growth in the short term.

The Canadian dollar rose against the US dollar after a good labor market report.

According to the data, the number of full-time jobs in Canada increased significantly in February and was higher than economists' forecasts. This would suggest that the deterioration in the prospects of the Canadian economy may be slightly smoother in the future.

According to a report by the National Bureau of Statistics of Canada, the number of jobs increased by 55,900 in February of this year, while economists had expected that the number of jobs would remain unchanged from January. In January, 66,800 new jobs were created in Canada.

The unemployment rate in February did not change, reaching 5.8%.

As for the technical picture of the USDCAD pair, there is a large resistance level in the area of 1.3465, from which you can count on active sales from the major players. Breakthrough and consolidation below support 1.3415, which could not be done on Friday, amid the fixation of short positions will lead to a further downward correction in the area of larger support 1.3375 and 1.3330.