EURUSD: Sees Limited Gains!
As long as 1.1335 support holds on a daily closing basis, the EURUSD remains in a recovery mode and further upside couldn’t be ruled out toward 1.1415. Anyway; above 1.1415 will extend the corrective recovery to 1.1500 where rejection very likely. Above 1.1500 will turn outlook bullish, paving the way to 1.1550 level ahead of 1.1640 level.
On the downside, support comes at 1.1335 ahead of 1.1290 level. A cut through support will restore the downside momentum and aim 1.1240 level, further down, support comes at 1.1180 level.
Conclusion: The EURUSD sees recovery threats above 1.1335 level with caution…
Support: 1.1335, 1.1290, 1.1240, 1.1180
Resistance: 1.1415, 1.1500, 1.1550, 1.1640
1. Germany will report on its Manufacturing PMI at 08:55 GMT. The forecast is to remain unchanged as the previous month at 52.3. Above forecast is positive for EUR
2. The U.S will report on Nonfarm Payrolls for Oct at 12:30 GMT. The forecast is to jump to 191K, from 134K a month earlier. Above forecast will support the U.S dollar.
3. The U.S will also report on the Unemployment Rate for Oct at 12:30 GMT The forecast is to inch up to 3.8%, from 3.7% in the preceding month. Below-forecast will support the U.S dollar. Above forecast us negative for the USD.
How both reports (Nonfarm Payrolls & Unemployment Rate) will affect the market?!
Scenario # 1: If both reports are positive. The EURUSD will fall to 1.1335/1.1290 levels at least, further down couldn’t be ruled out to 1.1240 level.
Scenario # 2: If both reports are negative, The EURUSD will continue recovering, eyes will be on 1.1500/1.1550…
Scenario # 3: One report is positive and the other is negative. A sideways move is expected within 1.1335/1.1500 range.