Better than expected ADP (214K vs 185K) could give another boost to NFP report which is expected to come close to 195K (Change in the number of employed people during the previous month without the farming industry) but we should also pay attention to Unemployment rate which is currently at record lows of 4.9%, But, today focus should ne definitely at AVE (Average Hourly Earnings) report that will show the change in the price that businesses pay for labor. Better than expected results should be important for next FED policy meeting and USD should gain another upward momentum. Worse than expected result will probably soften USD so we need to pay attention to the release which is due in 30 minutes.
Technically EURUSD POC is 1.1010-1.1020 (78.6,historical bearish wedge breakout, H4 PP) and if the price goes above we can expect 1.1120 while the rejection from the zone could target 1.0920. EURUSD is technically bullish at this moment so we could see an initial drop then another leg to the upside. In that case pay attention to inverted head and shoulders (head and shoulders bottom), exactly the bottom of the right shoulder 1.0910-25 (L3,DPP,channel break) where possible longs could be in play. 1.0800 should hold for BULLISH scenario.
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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