EUR/USD Analysis – NFP Day – Jan 8

The NFP report is due out Friday, and it is likely to cause a lot of volatility.  Estimates of the number vary greatly, so almost any number is likely to cause a stir.

Currently the pair sits just above 1.4300.  Short-term support is there, as well as the short-term trend line has also worked its way up to this level.  If broken, further support is at 1.4280-1.4270 and 1.4255-1.4250.  1.4220 is the 3 month low and a drop below would indicate another wave lower.  Support through 1.4200-1.4175 will need to be broken as well for that to occur.

A push back above 1.4340 gives us indication that the pair may once again move higher; targets are 1.4360 and 1.4390.  Movement through 1.4390 is likely to test 1.4410, 1.4440.

Keep in mind the NPF report could easily(and will most likely) move the pair beyond its average daily range.

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