Good day forex traders and readers.
Welcome to a quick update on the EUR/USD currency pair. As we head into the 4th of July holiday and Friday’s US Non-Farm Payroll, it is crucial that we manage our risk exposure.
In the previous EUR/USD review we noted that the currency pair continues to face bearish pressure. The region of 1.2989 would be critical. US edges towards a tightening monetary policy stance while the Euro Zone maintains an accommodative one.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair traded tightly for the last 12 hours. This is an indication of low liquidity conditions and hence one must be careful as per our blank”>forex education article on low liquidity in forex.
The weekly pivot S1 mentioned in our EUR/USD forecast for the week seems to be capping any bullish momentum for now.
There are some political issues arising out of Portugal and traders do not like sovereign woes in a country. This would probably weight the Euro.
The ADP employment report was better than expected and investors are getting positive for the US Non-Farm Payroll. Do be careful though because if disappointment arrives, the resulting volatility might be unexpected.