EUR/USD Soared 80 Pips Before US NFP Report - Kakiforex.com - Financial Market Media No. 1 in the World EUR/USD Soared 80 Pips Before US NFP Report EUR/USD Soared 80 Pips Before US NFP Report

May 7, 2021

EUR/USD Soared 80 Pips Before US NFP Report

 Market sentiment, which has seen a gradual recovery, has put pressure on the US dollar as investors await the US NFP employment data report for April to be published in the New York session today (Friday).


The increase in employment in the US is expected to increase by nearly 1 million in April, higher than the figure recorded in March, while the unemployment rate is projected to decline to 5.8% from 6.0%.


While the report is expected to be positive, the US dollar continued to depreciate more sharply in Thursday’s trading giving an advantage to other major currencies in the market to rise.


Like the price movement on the EUR/USD pair chart, after the bearish momentum displayed since last weekend slowed down on a bearish trend, the price has jumped aggressively and gave an early indication for an impending trend change.


This is because the flat price at the support level of 1.20000 has jumped past the Moving Average 50 (MA50) barrier on the 1 hour movement of the price and also past the trendline line formed on the bearish pattern.




The price spike around 80 pips yesterday has returned to the SBR (support become resistance) zone 1.20600-1.20900.



Price movements are expected to hover slowly in the zone until the European session before more aggressive movements in the New York session.


If the price continues to surge, the next resistance zone 1.21500-1.21800 will be the target if the NFP jobs report gives a declining reading and prompts the depreciation of the US dollar.


However, if the reading figures meet the forecast or better, the US dollar is expected to strengthen and push the price back to the support level of 1.20000.


The price that breaks the level of 1.20000 next will go up to the support zone at 1.19000 to continue the previous bearish trend.