InstaForex

October 8, 2021

EUR/USD Is Expected To Be More Vigorous Ahead Of The NFP Report

 The greenback continued to shy the cat to exhibit strengthening despite having gained data as well as unexpected and positive market sentiment this week.


Following these factors, investors are seen to remain cautious on the US NFP employment data report that will be published in the New York session tonight (Friday).


The issuance of a good NFP data report will stimulate and influence the Federal Reserve (Fed) to implement policy tightening (tapering) as early as November.




In addition, the 10 -year US treasury yield has seen an increase to reach the 1.60% level which is slightly expected to support the strengthening of the USD.


If you look at the price chart of the EUR/USD pair, the price movement again moved horizontally above the support zone of 1.15000 after showing a 70 pips plunge in Wednesday's trading.


Nevertheless, the price is often seen poking the Moving Average 50 (MA50) barrier level in the 1 -hour time frame to give investors a glimpse for the price to maintain the downtrend.


At the same time, the Euro remained unable to perform well as it still received a sad injection of European economic data.



The price movement on the EUR/USD chart is expected to continue to decline to the support zone of 1.15000 should the USD return to receive support from the NFP data report to continue strengthening.


The decline to the support zone will indirectly once again record the latest low ever reached in the 15 -month period since July 2020.


The next support zone at the 1.14000 level still remains the focus zone for investors to test in case a lower bearish trend occurs.


However, if the USD trades again weakly, the price movement is expected to re -reach the ‘immune’ zone to break the SBR (support become resistance) zone of 1.16000.


A higher price increase is likely to head to the next SBR zone around 1.17000 and the price is expected to signal for EUR/USD to return with a bullish trend.