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EUR/USD Ichimoku Cloud Analysis Ahead of NFP Data

The EUR/USD price is down for the past six straight days because of the overall strong greenback. The EURUSD has dropped to 1.1956, which is the lowest it has been since 1st December 2020.

EUR/USD News:. The eur to USD price will today react to the important trade numbers from France and the Swedish industrial production numbers. 

But most importantly, it will react to the first nonfarm payroll (NFP) numbers from the United States. As I wrote yesterday, analysts believe that the American economy added more than 50,000 jobs in January after shedding more than 140k jobs in the previous month. On Wednesday, data by ADP showed that the country added about 140k private jobs. In the past, the official and ADP numbers tend to differ. 

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The EUR/USD will also react to the US trade numbers scheduled for later today.

EUR/USD technical outlook 

The daily chart shows that the EUR/USD price has dropped by about 3% from the YTD high of 1.2350. The pair has also formed a head and shoulders pattern that is usually a bearish reversal sign. It is also attempting to move below the Ichimoku cloud. Therefore, if it does, the pair will likely continue falling, with the next target being at the support at 1.1850. However, a climb above 1.2050 will invalidate this thesis.

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EURUSD chart

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