|

EUR/USD Price Analysis: Parabolic rally will come under scrutiny ahead of the NFP event

  • EUR/USD volatility coming up in the NFP event.
  • The single currency's parabolic rally could be met with a sharp correction.

As per the prior analysis, EUR/USD Price Analysis: Bulls take on a critical hourly resistance in New York trade, the single currency moved in on the initial targets and has run with it. 

EUR/USD, weekly chart, prior analysis

#

At the start of the week, the M-formation was highlighted as an upside risk which has played out and beyond neckline as follows:

We now head into the US Nonfarm Payrolls as the next likely catalyst following Thursday's hawkish twist at the European central bank and the following illustrates the landscape from a lower time frame perspective. 

EUR/USD H4 chart

The price action is parabolic and it would be expected to be followed by a sharp decline in value. The 4-hour 50% mean reversion level is compelling for the confluence it has with prior resistance near the 1.1360's. The NFP event could be the catalyst for a shift through the imbalance of Thursday's with volatility expected in and around the event. 

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD posts modest gains above 1.1700 as ECB signals pause

The EUR/USD pair posts modest gains around 1.1710 during the early Asian session on Monday. The Euro strengthens against the Greenback after the European Central Bank left its policy rates unchanged and took a more positive view on the Eurozone economy, which has shown resilience to global trade shocks. Financial markets are likely to remain subdued as traders book profits ahead of the long holiday period.

GBP/USD gains ground near 1.3400 ahead of UK Q3 GDP data

GBP/USD gains ground after three days of losses, trading around 1.3390 during the Asian hours on Monday. The pair depreciates as the Pound Sterling holds ground ahead of the release of the United Kingdom Gross Domestic Product for the third quarter.

Gold sits at record high near $4,400 amid renewed geopolitical woes

Gold is sitting near $4,400 early Monday, renewing lifetime highs, helped by renewed geopolitical tensions. Israel-Iran conflict and US-Venezuela headlines drive investors toward the traditional store of value, Gold. 

Top Crypto Gainers: Audiera, Midnight, MemeCore sustain weekend gains

Audiera, Midnight, and MemeCore recorded double-digit gains on Sunday and remain top performers over the last 24 hours. Audiera extends the rally while Midnight takes a breather, and MemeCore struggles at a crucial moving average. 

De-dollarisation by design: Gold’s partner in the new system

You don’t need another 2008 for the system to reset. You just need enough nations to stop settling trade in dollars. And that’s already happening. "If gold is the anchor, what actually moves value in a post-dollar world?” It’s a question most gold investors overlook. We think in terms of storage and preservation, but in the new rails being built, settlement speed matters just as much as soundness of money.

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.