EURUSD has become quite non-volatile and impulsive after the price found support at 1.0770 area. EURUSD may strike higher as NFP report going to release today, which is expected to be the worse ever. Can EURUSD recover further? What are the charts and technical indicators are saying? Read more to find further insights into today’s EURUSD Technical Analysis.
May 8, 2020, | AtoZ Markets – EURUSD is currently trading around 1.0840 area and pushing higher. After a massive drop of more than 200 pips, EURUSD found support at 1.0770 event level. As per the current scenario, EURUSD may sustain the bullish momentum further but may face resistance at 1.0880 area.
EURUSD May Strike Higher as the U.S. Economy Passing The Historical Economic Crisis
The US non-farm payrolls report is going releasing today at sharp 6:30 PM GMT. Moreover, economist hopes that more than 21 million people will be jobless in April. It would urge the unemployment rate to 16% or more. Furthermore, 1983 is the last time when the jobless rate came in the double digits, which just after the 1980s recession. Historic unemployment should urge currencies and equities lower, but people are looking for a worse report on how Coronavirus affected the U.S. economy.
On the other hand, European Central Bank President Christine Lagarde said that she has no other choice but to go far conventional policies to fight the COVID-19 crisis. In comments delivered two days after the German court governed that the institution’s bond-buying program may be illegal. She also added, “We have to take all possible measures and policies to weather the shock. We have the most unprecedented economic crisis in peacetime. Moreover, we do have plenty of liquidity, and interest rates are likely to remain very low. We can handle this rise in debt for some possible time.”
EURUSD NFP Report Trading Forecast: Can Price Reach 1.0990?
According to the 4-hour chart, EURUSD is currently residing near 1.0840 area and trying to push lower after an impulsive bounce. Moreover, the price may make retracement towards the Tenkan line and then continue the in-process bullish pressure.
Image: EURUSD 4 HOUR Chart
As per the current price action, if the price comes down and bounces higher from the Tenkan line, the bulls may push the price higher towards 1.0880 area. In addition to this, if the price can break above 1.0880 with a 4-hour bullish close, the bullish pressure may sustain towards 1.0990 in the process. Alternatively, if the price rejects 1.0880 area, the bears may push the price down towards 1.0770 again.
Furthermore, the dynamic level of 20 EMA is currently residing near the price, which may act as a strong support to push the price higher. Besides, the MACD lines were residing below 0.00 level and had a bullish intersection. It indicates that bulls are quite strong to sustain further. As per NFP projection, USD may weaken but how the market sentiment perceives it, is currently the open question for all.
To conclude our EURUSD NFP Report Trading Forecast. EURUSD may continue higher today with the hope that the NFP report may result worse as expected. Though certain volatility and spikes may be seen before price sets a definite momentum for the coming days.