EUR/USD below 1.1640; fresh 2-week low ahead NFP
InvestingOnline.com
3/08/2018, 02:27The Euro traded lower on Thursday as the dollar performed heavy on the day as interest rates divergences and risk aversion weighted on its counterparts. Forex traders are waiting for the US unemployment report.
The EUR/USD closed on Thursday its third negative day in a row as the pair is extending its rejection from the 1.1750 area on July 31 to break below the dynamic support at 1.1640. The cross is opening Friday at 1.1580.
Valeria Bednarik, FXStreet analyst, comments that USD is “the overall winner on a risk-averse environment, hawkish Fed.” Technically, “the EUR/USD pair seems ready to extend its decline, breaking below a daily ascendant trend line coming from 1.1507, the yearly low set last June 21, now at around 1.1620 and providing an immediate short-term resistance.”
The market is waiting for the US employment report and the so-called nonfarm payrolls. The US economy is expected to have added 190K new jobs in July. The unemployment rate would decline to 3.9% from 4.0%.
The nonfarm payrolls is always a provider of volatility. As cited by Yohay Elam, ForexCrunch analyst, “the EURUSD moved, on average, 28 pips in the 15 minutes after the data release and 49 pips in the following 4 hours.”
EUR/USD below dynamic support
EURUSD daily chart August 2
With the EUR/USD trading at 1.1580, if the pair extends declines below the 1.1570, it will find supports at 1.1530 and the double bottom at 1.1510.
To the upside, the pair needs a close above the 1.1640. Resistances are now at 1.1670 and 1.1750.
