The Euro fell broadly against the US Dollar yesterday, dragging the price of EURUSD to less than even 1.1200 and the same trend might continue today ahead of the US Nonfarm Payrolls release. The technical bias will turn bearish if we get a bearish reversal from the current price level.
As of this writing, the pair is being traded around 1.1242. A hurdle may be seen near 1.1378, the high of the bearish pin bar which emerged yesterday ahead of 1.1465, the high of the last major upside rally as demonstrated in the following daily chart.
On the downside, the pair is likely to find a support around 1.1179, the low of the yesterday’s daily candle ahead of 1.0818, the low of the last major dip. The technical bias will remain bearish as long as the 1.4655 resistance area is intact.
The nonfarm payrolls remained 225K in May as compared to 223K in the month before, according to the median projection of different economists. The actual outcome will be released by the US Bureau of Economic Analysis today during the early New York Session. Generally speaking, higher than expected nonfarm payrolls reading is considered positive for the US Dollar (USD) and vice versa.
Considering the overall technical and fundamental outlook, selling the pair around current levels could be a good option if we get better than expected NFP reading today. The same sell trade will still be valid if we get only moderate downbeat reading or in line with projection reading. It is always recommended to use proper risk/reward ratio in order to optimize your profitability.