Home EUR/USD Price Faces Bearish Pressure Ahead of US NFP

EUR/USD Price Faces Bearish Pressure Ahead of US NFP

  • The US economic data should move the rate.
  • Taking out the upper median line activates further growth.
  • Failing to stay above 1.0864 announced exhausted buyers.

The EUR/USD price is trading in the red at 1.0833 at the time of writing. The pair comes under selling pressure after posting a 2-week top above 1.0870.

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Today, the fundamentals should be decisive. Surprisingly or not, the greenback took the lead in the short term even though the US Unemployment Claims came in at 221K versus 213K expected, while Trade Balance dropped from -67.6B to -68.9B in the last trading session.

On the other hand, the Eurozone Final Services PMI and German Final Services PMI came in better than expected, but the Eurozone PPI reported a 1.0% drop, beating the 0.6% drop expected.

Today, the German Factory Orders, German Import Prices, and Retail Sales reported poor data. Still, only the US economic data should have a major impact.

The NFP is expected at 212K versus 275K in February. The Unemployment Rate should remain at 3.9%, but the Average Hourly Earnings may announce a 0.3% growth in March versus a 0.1% growth in the previous reporting period.

In addition, the Canadian Unemployment Rate and Employment Change should also bring action.

EUR/USD Price Technical Analysis: Swing Higher Ended

EUR/USD price
EUR/USD 1-hour chart

Technically, the EUR/USD price ended its swing higher after registering only a false breakout through the ascending pitchfork’s upper median line (uml). It has also failed to stay above the 1.0864 former high, signaling exhausted buyers.

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It has dropped below the weekly R1 (1.0846), but the sell-off could be only temporary. As mentioned earlier, the fundamentals should move the price, making anything possible. Staying near the upper median line (uml) may announce an imminent breakout and continuation.

Still, it’s premature to talk about this scenario. New false breakouts through this dynamic may announce a new massive drop.

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Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.