EUR/USD Bounced Off the Support

Although EUR/USD broke below 1.0870, the pair failed to break below the support at 1.0820 before it formed a spinning top and a doji candlestick on the daily time frame and bounced off that level. I expect a further move to the upside, towards the resistance at 1.1000. That said, nothing is certain before the announcement of the US change in the Non-farm Payrolls tomorrow. We can likely expect a period of tight range and consolidation before the fundamentals, and that is never a good time to trade. I intend to wait and see the results and then make my decision about what positions to open.

GBP/USD Broke above 1.4000

GBP/USD finally broke above the resistance at 1.4000 and continued moving to the upside. Although the pair bounced off the resistance at 1.4080 today, I think it’s very likely for it to test it again and possibly break above it, reaching the next resistance at 1.4120, which coincides with the (MA)89 on the four-hour time frame. That said, considering that the bearish trend is not over yet and so far there is no signal for a reversal, I think that this move to the upside is only temporary and once the correction ends the pair will once again continue falling.

The Eurozone Unemployment Rate Continues Dropping

The unemployment rate in the Eurozone dropped for a third consecutive month in January, reaching 10.3%. This is its lowest rate since 2011.

Eurostat, the EU's statistical agency, said the jobless rate in the 19-country eurozone declined to 10.3% in January from 10.4% in December.

The number of people unemployed in the eurozone fell by 105,000 to 16.65 million.

The eurozone's jobless rate hit a high of 12.1% during the first half of 2013.

In the 28 member European Union the unemployment rate fell to 8.9%. That was down from 9% in December and the lowest rate recorded since May 2009.

The lowest unemployment rate in the eurozone was in Germany at 4.3%, while the highest rates were in Spain, at 20.5%, and Greece, at 24.6%.

According to Markit's survey of purchasing managers for eurozone manufacturers on Tuesday activity expanded at its weakest pace for a year last month as deep price cuts failed to boost slowing order growth.

Markit's manufacturing PMI for the eurozone dropped to 51.2 from January's 52.3.

Chris Williamson, Markit's chief economist said: "Concerns are growing that the region is facing yet another year of sluggish growth in 2016, or even another downturn. Lacklustre domestic demand is being compounded by a worsening global picture."

This couldslow the decline in unemployment as businesses become more cautious about taking on new staff.