The Euro (EUR) inched higher against the US Dollar (USD) on Wednesday, this caused an increase in the price of EURUSD, bringing it to a total of more than 1.1300. The price of the pair increased after a major economic news released. Considering the price movement of the pair over the last few days, it is anticipated that the technical bias may remain bearish because the pair’s price marked a higher low in the recent upside move.
EUR/USD Technical Analysis
Currently, the pair is being traded around 1.1351, since the price is increasing it is likely to observe a resistance around 1.1422, an immediate trend line resistance level is the point of reference. Another resistance may come around 1.1484, the 61.8% Fib level resistance ahead of 1.1649, the key horizontal level as demonstrated in the given below chart.
Talking about the downside, the price of the pair is likely to support the EURUSD around 1.1182, the horizontal support level ahead of 1.0800, the psychological number and then 1.0336 another key horizontal level support is likely to prevent the price from falling further as demonstrated in the given below chart. The technical bias may remain bearish as long as 1.1446, the major horizontal resistance level remains intact.
Nonfarm Payrolls – United States
Non-farm payrolls in the United States increased by 201 thousand in August of 2018, as compared to 147 thousand in during the month before and above market expectations of 191 thousand. Employment increased in professional and business services, healthcare, wholesale trade, transportation and warehousing, and mining.
Non-Farm Payrolls in the United States averaged 126.88 Thousand from 1939 until 2018, reaching an all-time high of 1115 Thousand in September of 1983 and a record low of -834 Thousand in October of 1949. Generally speaking, increasing payrolls numbers indicates a bullish trend for the US Dollar (USD) and vice vera.
Trade Idea
Considering the overall price behavior of the pair over the last couple of days, selling the EURUSD around current levels can be a good decision in short to medium term.