FX.co ★ EUR/USD Sell-Off Accelerates Ahead Of NFP! How To Trade The News? Trading Scenario For 07.02.2020

EUR/USD has managed to reach a fresh new low at 1.0964 in yesterday's trading session and it seems unstoppable on the Daily chart. The pair is under massive selling pressure after the upbeat US data. The price has broken below the 1.1000 psychological level as expected. I've said in my analysis that a valid breakdown below this downward obstacle will signal a drop towards 1.0924.

You should be careful today as the US will publish the Non-Farm Employment Change. The US economy is expected to add around 163K jobs, the Unemployment Rate could remain steady at 3.5%, while the Average Hourly Earnings could increase by 0.3% in January, according to the consensus. The fundamental factors will drive the price today, so EUR/USD could register a significant movement.

EUR/USD has been dropping like a rock after the retest of the first warning line (WL1) of the ascending pitchfork and after the failure to retest the upper median line (uml) of the minor descending pitchfork. The price was rejected from the 1.1111 - 1.1084 resistance area, so the outlook is bearish.

The price has reached the 250% Fibonacci line and the median line (ml), two important downside targets, a valid breakdown below these obstacles could send the pair towards the second warning line (WL2).

• Trading Tips

Some good US data today will attract more sellers which will push the price towards the next downside targets (1.0924, 1.0884, WL2). Technically, the US dollar is very strong as the USDX has ignored the 98.00 level and it has reached new highs. If the USDX will resume the upside movement, EUR/USD should drop further.

EUR/USD could be attracted also by the lower median line (lml) of the descending pitchfork if the US data comes in better than expected. The pair is under massive selling pressure as long it is traded below the 1.1 level and within the descending pitchfork's body.