FX.co ★ Trading plan for 01/02/2019

Trading plan for 01/02/2019:

On Friday, the 1st of February, the main event of the day is the US job market report in form of Non-Farm Payrolls data, Unemployment Rate data, Average Hourly Earnings data and Participation Rate data. Nevertheless, the global investors should keep an eye on UoM Consumer Sentiment and ISM manufacturing data from the US, CPI data from the Eurozone and a bunch of PMI Manufacturing data from Germany, Spain, France and Italy.

EUR/USD analysis for 01/02/2019:

The NFP-Payrolls data are scheduled for release at 13:30 pm GMT and the market participants expect a decrease from 312k last month to 165k in the reported month. The Unemployment Rate is expected to remain unchanged at the level of 3.9% (record lows).

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market has hit the 61% Fibonacci Expansion at the level of 1.1505, made a local high at 1.1514 and suddenly reversed towards the technical resistance. This resistance was violated as well as the Bearish Engulfing pattern was made. Since then, the market has made a new local low at the level of 1.1435 and is trading below the support of 1.1449. The next target for bears is seen at the level of 1.1411 and if the NFP-Payrolls data will be worse than expected, then the chances are that the price will break below this level of support and head even lower towards the weekly pivot at the level of 1.1377.

Please notice, the market conditions are coming off the overbought levels, but the momentum is still neutral as the global investors await the US job market data.