EURUSD Trades at 9-Week Highs Ahead of the US NFP Report

The rally on EURUSD for the past few trading has been enough to push it to its 9-week highs. With the much-anticipated US NFP report due today, can the currency pair extend its gains or will it bounce off resistance?Due at 1:30 pm GMT, the headline NFP figure is eyed to come in at 175,000. With this, the unemployment rate is expected to remain steady at 3.6%. Meanwhile, the average hourly earnings is seen at 0.3%.

The recent rise on EURUSD can mostly be attributed to the dollar’s weakness. This was exacerbated earlier this week when the Federal Reserve aggressively slashed rated by 50 basis points. A disappointing US jobs report could weaken the dollar further and allow EURUSD to extend its gains. On the other hand, a better-than-expected reading could help the dollar pare some of its losses and weigh down EURUSD.

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EURUSD Outlook

On the 15-minute chart, we can see that EURUSD has formed an ascending triangle. This is characterized by higher lows with the market making steady highs. This is generally considered as a bullish continuation pattern. A break above today’s highs at 1.1247 could mean that EURUSD still has some fuel left to trade higher. It could rally up to its resistance around 1.1340.

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However, if there are not enough buyers in the market, we could see EURUSD retrace some of its gains. By looking at the hourly time frame and connecting the lows for February 28 and March 5, we can see that EURUSD has room to trade lower and still maintain its uptrend. The currency pair could fall to the confluence of support around 1.1180. This price is where the rising trend line, previous highs, and 50% Fib level coincide (when drawing the Fibonacci retracement tool from yesterday’s low to today’s high).More content