FXOpen
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.
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.
Latest from Forex Analysis
Latest articles
Since the Start of the Week, Brent Oil Price Has Dropped over 4%
At the beginning of the week, March 15, we wrote that the price of Brent oil could form a correction from the resistance level of USD 91 per barrel. Since then, the price has decreased by more than 4% due
Fair Value Gaps vs Liquidity Voids in Trading
Understanding fair value gaps and liquidity voids is essential for traders seeking to navigate the complexities of the financial markets. These concepts, deeply rooted in the Smart Money Concept (SMC), provide valuable insights into the dynamics of supply and demand,
UK100 Share Index Rises as UK Inflation Slows
Yesterday, the UK Office for National Statistics (ONS) reported that the CPI stood at 3.2% in March. According to ForexFactory, analysts expected 3.1%, and a month ago the index was 3.4%.
Grant Fitzner, chief economist at the