The Euro (EUR) inched higher against the US Dollar (USD) on Wednesday, increasing the price of EURUSD to more than 1.1200 following some major economic news releases. 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 1.1355, the price of the pair is likely to observe a resistance around 1.1355, the confluence of a trend line and a resistance level ahead of 1.1421, the trendline resistance and then 1.1443 the key horizontal level support is likely to prevent the price from increasing further as demonstrated in the given below chart.
Talking about the downside, a support can be seen around 1.1229, an immediate trendline support level. Another trendline support level may come around 1.1082, ahead of 1.0567, the major horizontal support level as demonstrated in the given below chart. The technical bias may remain bullish as long as 1.1355, 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) whereas decreasing numbers suggest a bearish market for the US Dollar (USD).
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.