by FXOpen on December 7th, 2018

EUR/USD Trades Range Bound on the Watch for US NFP Data

The global shift to safety supported the US Dollar’s relative safe-haven status and brought some pressure on the EUR/USD pair.

The greenback failed to capitalize on the recent uptick and was further cast down by the unfavorable release of US ADP Employment Report, showing that the private sector added 179K new jobs in November against 195K expected. However, the USD bulls seemed rather unaffected by optimistic US ISM non-manufacturing PMI.

Moreover, market participants now look forward to the US monthly jobs report (NFP), for some meaningful momentum on the last trading day of the week. Despite today’s key macro data, investors will still have some reasons to be cautious ahead of the latest FOMC monetary policy decision, later in the month.

The Euro formed a decent support base near the 1.1315 level and later recovered against the US Dollar. The EUR/USD pair traded higher and managed to break the 1.1330 and 1.1340 resistance levels.

The pair even broke the 1.1355 resistance and the 50 hourly simple moving average. However, the upside move was capped by the 1.1415 level and a connecting bearish trend line on the hourly chart.

The pair declined again and tested the 1.1355 support area and the 50% Fib retracement level of the last wave from the 1.1321 low to 1.1412 high.

Dips remained supported above 1.1350 and the pair bounced back. It broke the 1.1370 level and a short-term contracting triangle with resistance at 1.1375. It has opened the doors for more gains and it seems like the pair could climb again towards the 1.1400 and 1.1415 levels.

By FXOpen

FXOpen is a Forex and Cryptocurrency broker founded in 2005 by a group of traders. With over 10 years of experience, the company has established itself as a major Forex broker that continues to expand rapidly across the globe. FXOpen offers the MT4 and MT5 Forex trading platform with a wide range of trading instruments including 100+ FX, CFDs, Indices and Cryptocurrency markets. FXOpen also provides its own PAMM technology allowing clients to benefit from the strategies of professional traders with a proven track record of successful trading. The FXOpen Group also includes the ASIC regulated FXOpen AU in Perth Australia and the London-based FXOpen UK that is regulated by the FCA.