EUR/USD: Downtrend set to continue but sky-high NFP expectations may lead to a bounce

FXStreet Team FXStreet

EUR/USD dropped below 1.20 on Thursday and has failed to recapture that level. On Friday, the US dollar may suffer a setback if Nonfarm Payrolls figures fall short of elevated estimates, Yohay Elam, an Analyst at FXStreet, reports.

Key quotes

“While the economic calendar is pointing to an increase of 50,000 jobs, the ‘whisper’ estimates are probably significantly higher, perhaps at around 200,000. If the actual figures fail to amaze investors, profit-taking on dollar longs may follow.”

“The US has ramped up its pace while Europe is moving at a snail's pace, and awaiting more shipments. Johnson and Johnson, which makes a single-shot covid vaccine, has filed for regulatory approval in the US.”

“After breaking below 1.20, euro/dollar is clearly trending down, and suffering from downside momentum on the 4-hour chart. However, the Relative Strength Index is just at 30, signaling oversold conditions.”

“Support awaits at the fresh 2021 low of 1.1950, and it is followed by 1.1925, 1.1880 and 1.1850 – all were stepping stones on the way up in November 2020. Resistance is at 1.20, followed by 1.2050, a former triple-bottom.”

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FXStreet Team

FXStreet

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