EURUSD still consolidating in a short trading range of 1.1175 – 1.1125, overall staying slightly bullish on Wednesday and jumping 30 pips from an opening price of 1.1140. The pair placed low of 1.1125 after opening trade session at 1.1140 prices.
Fundamentals, the data released were mixed and were not strong eneogh to give this pair a certain bullish or bearish direction. US ADP Private sector employment increased by 177,000 jobs from July to August according to the August ADP National Employment Report. Further, economic figures released by Eurozone were also mixed.
Currently, we have some important economic events that are going to impact EURUSD. I see a strong selling below 1.1120 and I would recommend followers to take buying positions above 1.1130 with minimum stops of 20 – 30 Pips.
NOTE: Investors are likely to wait for NFP due on this Friday before taking any major trading decision.
Today on Thursday, the investors are recommended to monitor the following events:
• Markit/ADACI Italy Manufacturing PMI
• Markit France Manufacturing PMI
• Markit/BME Germany Manufacturing PMI
• MarkitEurozone Manufacturing PMI
• Challenger Job Cuts (YoY)
• Non-Farm Productivity
• Unit Labor Costs
• Initial Jobless Claims
• Markit US Manufacturing PMI
• ISM Manufacturing
• Construction Spending (MoM)
The EURUSD is trading right above a strong support level of 1.1130, we can see the pair is consolidating above this level. Further, low test bar / Doji candles are demonstrating that sellers have exhausted. The reason can be US NFP and Unemployment rate pending on this Friday.
Right now, I would recommend followers to take buying positions only above 1.1130 with minimum stops of 20 – 30 Pips.
Previous Analysis Reference: Trade remained in the profit of 30 pips. (30th Aug 2016)
Daily Trading Range:
1.1225 – 1.1105
Daily Support & Resistance Levels
Pivot Point: 1.1154
– Sell below @ 1.1210
o Take Profit:
1st @ 1. 1130
o Stop Loss 1.1240