July 2, 2021

NFP Is Getting Closer, What Will Happen To EUR/USD?

 Remaining the strengthening momentum, the US dollar resumed trading in early July positively yesterday ahead of the US NFP employment data report in this New York session which investors have been waiting for since the beginning of the week.

Being a good indicator of the NFP report, the readings on the unemployment claims data published yesterday as well as the private sector ADP employment report both show positive readings.

Talks between Federal Reserve (Fed) members for policy tightening measures also pushed the US dollar to strengthen yesterday to hit a 3 -month high.

The Euro managed to show gains in the European session yesterday following published European economic data showing a good reading.

But the rise failed to be sustained as the European currency rebounded in New York session trading.

Looking at the price movement on the chart of the EUR/USD currency pair yesterday, the price has jumped almost 50 pips to the level of 1.18800.

However, after testing the Moving Average 50 (MA50) barrier on the 1 -hour time frame of the price movement, the decline was re -displayed to the level around 1.18500 which was the support zone last week.

The price movement slowed and flattened around that on trading that continued in the Asian session this morning.

The lower decline is expected to head to the support zone at 1.18000 and if the price manages to break it, the next bearish target is seen at around 1.17200.

However, anything can happen when the U.S. NFP employment data report is released soon.

In fact it is not impossible for investors to witness a rebound in the price above the 1.19000 level to signal a rebounding trend.

A higher rise will retest the resistance zone at 1.2000 after the price moved below that price zone over the past week.