Looking for setups to trade during the U.S. NFP report release?
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In case you missed it, EUR/USD is chillin’ like a villain near a technical support level ahead of Uncle Sam’s employment updates.
EUR/USD: 4-hour
EUR/USD 4-hour Forex Chart by TradingView
The euro is NOT having a great month so far, as rising calls for another European Central Bank (ECB) rate cut in October and increased tensions in the Middle East are limiting the demand for the common currency.
The U.S. dollar, on the other hand, is gaining some pips back from its counterparts as safe haven demand and easing calls for aggressive Fed rate cuts are bringing some bulls back to the Greenback’s yard.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!EUR/USD, which turned lower from the 1.1200 area in late September, has fallen down to the 1.1050 levels that had been a resistance zone in August and a support area in September.
Aside from that, the 1.1000 – 1.1050 area lines up with the bottom of a range pattern and the S2 (1.1021) Pivot Point in the 4-hour time frame.
Are we looking at a bounce in the making?
Today’s U.S. NFP report may provide a catalyst. Word around is that Uncle Sam will see weaker employment numbers in September, which could fire up hopes for more jumbo rate cuts from the Fed and weaken the dollar.
Green candlesticks and sustained trading above 1.1050 sets EUR/USD up for a possible jump to the 1.1100 mid-range area if not the 1.1200 range resistance zone.
If today’s events result in a net bullish USD environment, however, then we could see EUR/USD trade below its range support. Look out for consistent trading below 1.1000, which could draw in USD buyers and drag EUR/USD to potential inflection points like 1.0900 in the next few days.
Good luck and good trading this setup!