EUR/USD dropped yesterday, clocking a low after receiving a positive news on the U.S. dollar. Traders were awaiting the German factory orders which came disappointing.
As a result, the euro continues to suffer facing the greenback.
EUR/USD still has a chance to redeem itself as financial analysts await the ECB meetings results as they hint for rising Euro-zone government bonds, and later on U.S payroll data due on Friday. These two reports will give a better picture on how the trend of the EUR/USD will move, also because there are crucial news on the U.S. market.
For today, all predictions and forecasts can be only as far as the NFP release as the price action after the release would depend a lot on the actual NFP numbers rather than any technical or fundamental action. Keeping this in mind, we can safely say that the euro would be within the usual ranges of 1.1150 and 1.1250 and the bigger support at 1.1045 until the NFP. It is advisable for the traders to stay away from the market for the whole of today and watch the NFP numbers and then base their future trades on technical and fundamental forecasts rather than news-based ones. A strong NFP report would mean that the Fed is likely to hike rates sooner while a below par number would mean that the Fed would hike rates only next year and this would cheer up the stock markets and make the USD weaker causing a good bounce in EURUSD. We shall await the numbers before we form any forecast of the short term direction of this pair. We hope the traders also do the same rather than get pulled in by all the volatility and making basic trading errors.