How to trade EURUSD ahead of the NFP release

Table of Contents

Continuing a bearish momentum, the Euro (EUR) slid down against the U.S. Dollar (USD) last week, decreasing the price of the EURUSD pair to less than 1.1800, ahead of the release of U.S. Nonfarm Payroll news. 

Technical Analysis 

As of this writing, the EURUSD pair hovers around 1.1726, with multiple support levels in sight. If the price keeps falling, the EURUSD pair might find some support near the given below price levels. 

Short-Term Support 


1.1567 – the lower trendline arm 

1.1488 – the major horizontal support

1.1300 – the psychological number

On the upside, the pair might face some hurdles near the listed price levels. 

Short-Term Resistance 

1.1909 – the confluence of trendlines

1.2011 – the high of August 30, 2021

1.2100 – the psychological level 

U.S. Nonfarm Payroll News 

The US Bureau of Labor Statistics is scheduled to release numbers for the Nonfarm payroll news on April 02, 2021. According to economist estimates, the Nonfarm payroll data might register a reading of 639K in March, as compared to the reading of 379K, in the month before. 

The Nonfarm payroll data reflects the number of non-agricultural job vacancies created in the United States the last month. The payroll data changes every month and carries high volatility exposure due to direct relation with the Central Banks’ economic policy decisions. It is worth mentioning here that the payroll data is subject to multiple subsequent reviews that may create additional volatility in the forex market. Generally speaking, a high reading indicates a strengthening U.S. economy and suggests a bearish trend for the EURUSD pair and vice versa. 

Conclusion 

Keeping in view the price behaviour of the EURUSD pair over the past few days, selling the pair around 1.1909 might yield some short to medium-term profits. 

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