The price of Euro (EUR) extended upside movement against the US Dollar (USD) on Friday following the nonfarm payrolls release, increasing the price of EURUSD to more than 1.1000. The pair is expected to face a tough hurdle near 1.1050 which is the high of last major upside rally.
Technical Analysis
As of this writing, the pair is being traded near 1.0980. A hurdle may be seen around 1.1000, the psychological number ahead of 1.1050, the high of the bearish pin bar which emerged in the previous upward move and then 1.1532, high of the ongoing year.
On the downside, the pair is expected to find a support around 1.0718, the low of the last dip on daily chart ahead of 1.0469, the low of ongoing year as demonstrated in the above chart. A break and daily closing below the 1.0469 support area could open doors for the parity level at 1.0000.
Unexpected NFP
US corporations added just 126K jobs in March as compared to 264K in the month before, a government report revealed on Friday, down beating the average forecast of 245K by a long shot. Generally speaking, higher NFP are considered positive for the economy and vice versa thus the steep fall in the March NFP spurred huge bullish momentum in the price of EURUSD. The trend may continue in short term however every rally in EURUSD offers a long term sell opportunity in Euro.
Trade idea
Considering the overall technical and fundamental outlook, selling the pair around the 1.1050 resistance area could be a good move if we get a bearish pin bar or engulfing candle. The trade should however be stopped out on a daily closing above the 1.1100 resistance area.
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