FXOpen
The Euro fell broadly against the US Dollar yesterday, dragging the price of EURUSD to less than even 1.1200 and the same trend might continue today ahead of the US Nonfarm Payrolls release. The technical bias will turn bearish if we get a bearish reversal from the current price level.
Technical Analysis
As of this writing, the pair is being traded around 1.1242. A hurdle may be seen near 1.1378, the high of the bearish pin bar which emerged yesterday ahead of 1.1465, the high of the last major upside rally as demonstrated in the following daily chart.
On the downside, the pair is likely to find a support around 1.1179, the low of the yesterday’s daily candle ahead of 1.0818, the low of the last major dip. The technical bias will remain bearish as long as the 1.4655 resistance area is intact.
Nonfarm Payrolls
The nonfarm payrolls remained 225K in May as compared to 223K in the month before, according to the median projection of different economists. The actual outcome will be released by the US Bureau of Economic Analysis today during the early New York Session. Generally speaking, higher than expected nonfarm payrolls reading is considered positive for the US Dollar (USD) and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels could be a good option if we get better than expected NFP reading today. The same sell trade will still be valid if we get only moderate downbeat reading or in line with projection reading. It is always recommended to use proper risk/reward ratio in order to optimize your profitability.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Oracle (ORCL) Shares Fall Below $180
Yesterday, Oracle (ORCL) shares dropped by 5% following reports that investment firm Blue Owl Capital had withdrawn from financing a $10bn data centre project in Michigan.
The collapse of the deal raises questions over Oracle’s ability to meet its
Sterling Consolidates Ahead of the Bank of England Decision
Sterling is consolidating as markets await the Bank of England’s interest rate decision, while investors’ attention is gradually turning to tomorrow’s meeting of the Bank of Japan. The UK currency is moving cautiously, as markets have largely priced
Analysis of the Volatility Spike on the BTC/USD Chart
Yesterday, the BTC/USD chart saw sharp price swings during the US trading session:
→ first, Bitcoin rose by more than 3%;
→ shortly afterwards, it dropped by over 4%.
The main impulses unfolded within just a few hours and triggered liquidations