Early in the European session, EUR/USD is trading around 1.0541, above the 21 SMA, and above the downtrend channel that was broken yesterday in the American session. In the next few hours during the American session, data of crucial importance for the US economy will be published, namely, Non-Farm Payrolls (NFPs).
This data could generate strong volatility in the market and we could see bullish movement in the EUR/USD pair.
This data, if negative, could give bullish momentum to the euro so that EUR/USD could reach 3/8 Murray and even the 200 EMA located at 1.0675.
As the euro is exiting the overbought zone, a technical correction from current price levels towards the psychological level of 1.0500 could be seen as an opportunity to resume buying. The 2/8 Murray zone could be seen as an opportunity to buy just in case a technical bounce occurs above this area.
On the other hand, if EUR/USD falls below 1.0500 (21 SMA), we could expect a bearish move to occur.
The instrment could reach the October 3 low around 1.0447 and even 1/8 Murray at 1.0385. The daily pivot point is located around 1.0532 which favors a positive outlook. However, with a bounce around the daily S_1 support, we could expect an opportunity to buy the euro above 1.0513.
The eagle indicator has been giving a positive signal since October 3. However, any pullback and while the euro trades above 1.0450 will be seen as an opportunity to buy with the target at 1.0675 (200 EMA).
