The US NFP is up next with 215K expected. The EURUSD has positioned itself between some key support and resistance levels. What are the levels that are in play after the report given a stronger number (move lower) or weaker number (move to the downside).
The EURUSD could not sustain the price above the 1.2660 (the November 2012 low) and the 100 hour MA. From there the price rotated back to the downside. These were the levels outlined in the video review from yesterday (if you have not seen one of the videos here is a trimmed version of yesterdays’ outlining the EURUSD ONLY. If you want to see more video, CLICK SUBSCRIBE on the YouTube channel).
Now we wait for the NFP report and are at the trend line support line (from the video) which is below the 100 hour MA (blue line at 1.2645) and the 1.2660 level on the topside AND the lows for the week at 1.2583 and 1.2570 (see chart below). The below chart outlines, the targets on the downside and the topside for the pair. A stronger than expected number (>220K, watch revisions too), will look to take the EURUSD below the 1.2570 low for the week. Below that is the underside of the broken channel trend line at the 1.2543. If it gets to there, the range for the day will be around 135 or so pips. This should give a cause for pause (I would think – of course dependent on the data) so watch the action at the level. However, corrections then should be limited to 1.2570. On the topside, we ventured above the 100 hour MA and the low from November 2012 at the 1.2644 and 1.2660 levels currently. They will need to be broken and the price stay above to keep the bulls in control. The other level will include the 1.2701 and the 200 hour MA (green line). The price has not been above the 200 hour MA since September 17th.
EURUSD targets for bullish and bearish moves.
trt
