EUR/USD Plunges 100 Pips Ahead of NFP! - Kakiforex.com - Financial Market Media No. 1 in the World EUR/USD Plunges 100 Pips Ahead of NFP! EUR/USD Plunges 100 Pips Ahead of NFP!
InstaForex

June 4, 2021

EUR/USD Plunges 100 Pips Ahead of NFP!

 More buoyant heading into the weekend, the US dollar, which is expected to move weaker, managed to perform well ahead of the US NFP jobs data report for May in tonight's New York session.


The published economic data is seen to continue to signal a good economic recovery in the United States.


After the US manufacturing sector ISM survey data published on Tuesday recorded an upward reading, the reading of the services sector data published yesterday also rose to record an all -time high.


In fact, the data on US unemployment claims has fallen below the 400,000 level, the lowest for 14 months, giving a positive signal to the upcoming employment data.




As observed on the major price chart of the EUR/USD currency pair yesterday, the price clearly made a decline after the strengthening of the US dollar returned to dominate putting pressure on other major currencies in the market.


After the price failed to break the resistance zone of 1.22500 like last week, the price zone at 1.21800-1.21500 is seen as the zone that will support the upside again.



On the other hand, the price has penetrated the zone reaching the level of 1.21170 in the New York session yesterday to record the latest weekly low.


The lower decline is expected to test the next focus zone at 1.20900-1.20600.


And if the NFP report is published with encouraging figures and continues to strengthen the value of the US dollar, prices could plunge lower beyond that zone.


However, if the opposite happens, the price increase will retest the 1.21800-1.21500 zone which is now a resistance for the price to pass.


A higher rise will again test the 1.22500 resistance zone to continue the rise to the latest highs.