The Euro (EUR) extended downside movement against the US Dollar (USD) on Friday, dragging the price of EURUSD to less than even 1.1180 ahead of the release of crucial US employment report. The technical bias remains positive because of a Higher Low and Higher High in the recent wave.
Technical Analysis
As of this writing the pair is being traded around 1.1178 within a touching distance from its 50-DMA and 200-DMa located at 1.1172 and 1.1166 level. A break below the same could expose 1.11 handle. On the other side, resistance is seen at 1.1209 (previous day’s high) and 1.1236 (38.2% of Mar-Aug rally).
While another major support may be noted around 1.1151 which is the 61.8% fib level of the last major move as demonstrated in the above chart. The technical bias will remain bullish as long as the 1.1104 support area is intact.
Nonfarm Payrolls
The nonfarm payrolls employment report for September is expected to produce another solid gain in jobs: economists predict a 190,000 increase. The unemployment rate is likely to remain at 5.1%. The report will be released today during the early New York session by the Bureau of Economic Analysis. A better than expected actual outcome will be seen as bearish for EURUSD and vice versa.
Trade Idea
Considering the overall technical outlook, selling the pair could be a good strategy if we get a valid bearish reversal candle such as bearish pin bar, bearish engulfing candle or shooting star following the release of nonfarm payrolls report.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT
