Last month NFP data beat the expectations and printed 200K vs the 184K estimated. The market consensus forecast for this week’s February Non-Farm Payrolls is another print of 200K.
If we receive stronger numbers than expected this could drive EURUSD towards the nearest support of 1.2200, which is a key support area. However, if NFP comes in below the expected 200K this could cause USD weakness and expect a test of resistance at the 1.2400, 1.2500 levels.
It’s also important to consider the latest EUR news when trading EURUSD. Whilst ECB president Mario Draghi yesterday acknowledged the Eurozone’s growth is expanding at a faster rate than previously expected, a series of subdued inflation forecasts set a bearish tone for EUR and disappointed buyers of EURUSD.
