EURUSD is trading around its 11-week highs ahead of the US NFP report. As of this writing, the currency pair is trading at 1.1345 which is the highest level we have seen since March 10, 2020. Will it extend its rally or give up its gains on the US NFP report?
Due at 1:30 pm GMT, the US official labor figures for May is expected to show a decline of 7.750 million jobs. Meanwhile, the unemployment rate is seen to post a 19.4% uptick while the average hourly earnings report is anticipated at 1.0%.
Better-than-expected figures could strengthen the USD which means that EURUSD may trade lower. On the other hand, disappointing readings could weaken the dollar and help fuel the rally on the currency pair.
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EURUSD Outlook
On the daily time frame, it can be seen that EURUSD has had a seven-day winning streak. If there are enough buyers in today’s trading, we could see it extend its rally even further. This would then mean that EURUSD may soon test its March 9 highs around 1.1480.
The 1-hour time frame also shows a bullish pennant chart pattern. This is characterized by a consolidation after a sharp rally. When you enroll in our free forex trading course, you will learn that this is a bullish continuation indicator. A strong close above yesterday’s highs at 1.1361 could confirm the bullish bias presented above.
On the other hand, a strong close below the consolidation around 1.1311 may invalidate the bullish chart pattern. It could then mean that there are still sellers in the market that could push EURUSD to support around the rising trendline at 1.1235.