The dollar gained everything it could on Friday against the euro, the pound, and other risk assets, aided by strong US labor market data.

The unemployment rate in the US unexpectedly fell in March, indicating a stabilization in the labor market. The increase in the number of employed also surged by 178,000, exceeding all economists' forecasts. These favorable economic signals strengthened the US currency in the global arena, generating enthusiasm among investors. Typically, such a trend favors a strengthening of the national currency, reflecting a healthy economy and the dollar's appeal as an investment instrument.

Today, the eurozone market demonstrates cautious optimism despite the absence of new data. Traders seem to be getting used to the uncertainty and are seeking opportunities in other sectors where geopolitical risks are less pronounced. The energy sector, being at the center of geopolitical events, is facing the most pressure. The rise in oil prices due to tensions in the Strait of Hormuz could have a dual effect on both the European currency and the US dollar. On one hand, it supports oil exporters; on the other, it increases production costs for many European companies, undermining their competitiveness. Nevertheless, any escalation of the conflict may lead to a sharp strengthening of the US dollar as traders seek refuge in the world's most liquid currency.

Despite signs of a possible diplomatic resolution, risks remain high. In such conditions, it is recommended to exercise maximum caution and avoid making risky decisions until a clearer picture of developments emerges.

There is also no data from the UK today, so pound traders will be relying on new actions from the US.

Momentum Strategy (for Breakout):

For the EUR/USD Pair

• Buying on a breakout of the level 1.1537 may lead to an increase in the euro to the area of 1.1560 and 1.1590;
• Selling on a breakout of the level 1.1510 may lead to a decline in the euro to the area of 1.1485 and 1.1445;

For the GBP/USD Pair

• Buying on a breakout of the level 1.3225 may lead to a rise in the pound to the area of 1.3250 and 1.3280;
• Selling on a breakout of the level 1.3215 may lead to a decline in the pound to the area of 1.3182 and 1.3160;

For the USD/JPY Pair

• Buying on a breakout of the level 159.74 may lead to an increase in the dollar to the area of 159.84 and 160.24;
• Selling on a breakout of the level 159.53 may lead to a sell-off in the dollar to the area of 159.29 and 159.00;

Mean Reversion Strategy (for Pullback):

For the EUR/USD Pair

• I will look for short positions after a failed breakout above 1.1538 on a return below this level;
• I will look for long positions after a failed breakout below 1.1510 on a return to this level;

For the GBP/USD Pair

• I will look for shorts after a failed breakout above 1.3231 on a return below this level;
• I will look for longs after a failed breakout below 1.3190 on a return to this level;

For the AUD/USD Pair

• I will look for shorts after a failed breakout above 0.6925 on a return below this level;
• I will look for longs after a failed breakout below 0.6895 on a return to this level;

For the USD/CAD Pair

• I will look for shorts after a failed breakout above 1.3950 on a return below this level;
• I will look for longs after a failed breakout below 1.3928 on a return to this level;