Today’s NFP is released before FOMC meeting 2 weeks later. In latest press conferences FED has stated the importance of all data in the decision to raise interest rates. The problem is that global markets are affected by China stock market but as FED implies – “ it will not have any impact on the rate hike timing “. Now we need to see if employment is still strong , although August tends to be a bit lower with employment numbers, before the revision happens.
Technically EURUSD has broken lower below the buffer zone I have warned about some days ago and we can see that the price effectively broke through 1.1100 just to be bought afterwards again up to lower part of BUFFER ZONE (1.1155)-. We cannot know the exact NFP number but technically speaking 1.1155-1170 (H3, DPP,38.2, lower line of buffer zone) is providing confluence and the pair could reject towards 1.1020-1.0980.
Treat the pair with caution as volatility will rise , there will be a lot of things influencing the price movement, but this is general idea of a possible movement. If 1.1240-60 holds then the pair could reach 1.1020-1.0980, but if 1.1260 breaks to the upside the pair could break upper TL and proceed to 1.1350.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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