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
FXStreet
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.
