Chart: EUR/USD at Support Level Ahead of US NFP Release!

Looking for setups to trade during the release of the US NFP report?

We caught up!

In case you missed it, EUR/USD is cooling like a villain near a technical support level ahead of Uncle Sam’s employment updates.

EUR/USD 4 Hour Forex Chart from TradingView

The euro is NOT having a great month so far as growing calls for another European Central Bank (ECB) interest rate cut in October and heightened tensions in the Middle East limit demand for the common currency.

The US dollar, on the other hand, is gaining some ground back from its peers as safe-haven demand and easing calls for aggressive Fed rate cuts bring some bulls back into the Greenback’s backyard.

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your homework on the US Dollar and the Euro yet, then it’s time to check the economic calendar and stay up to date with the daily fundamental news!

EUR/USD, which came down from the 1.1200 area at the end of September, fell to the 1.1050 levels which had been a resistance area in August and a support area in September.

Apart from that, the 1.1000 – 1.1050 zone aligns with the bottom of a range pattern and the S2 pivot point (1.1021) in the 4-hour timeframe.

Are we looking at a leap in the making?

Today US NFP report can provide a catalyst. Uncle Sam is rumored to see weaker employment numbers in September, which could raise hopes for more jumbo interest rate cuts from the Fed and weaken the dollar.

Green candlesticks and sustained trading above 1.1050 sets EUR/USD up for a possible bounce to the mid-1.1100 area, if not the 1.1200 resistance area.

If today’s events result in a net bullish USD environment, then we could see EUR/USD trade below its support level. Watch out for consistent trading below 1.1000, which could attract USD buyers and pull EUR/USD towards potential inflection points such as 1.0900 in the coming days.

Good luck and happy trading with this setup!