EUR/USD – Outstanding Jobs Report Puts Key Level To Test

#OPINIONLEADER# #Signal#

 AUG 11, 2021

• U.S. jobs report sent EUR/USD below 1.18 handle
• Upcoming U.S. CPI data presents potential selling opportunities

Chart 1: EUR/USD D1 chart

The strong U.S. nonfarm payroll report released last Friday led to the strengthening of the U.S. dollar across the board. (Check out this post for the key points on the jobs report!) As a result, EUR/USD ended the week lower, breaking below the 1.18 handle.

At the moment, EUR/USD is trading down towards the 1.17 handle which was last tested but failed to break below at the end of March. With the upcoming U.S. CPI data to be released later today, the U.S. dollar may receive a further boost in strength if the data were to come out strong like its previous releases, causing EUR/USD to potentially break below the 1.17 handle. This may present selling opportunities of EUR/USD.

Trade Setup for EUR/USD (D1)

Sell Stop at 1.16600

Upcoming major news that may impact price movement of EUR/USD

11 August – U.S. CPI m/m data release at 2030 (GMT+8)

11 August – FOMC member Bostic speaking at 2230 (GMT+8)

15 August – U.S. Preliminary UoM Consumer Sentiment data release at 2200 (GMT+8)

17 August – U.S. Retail Sales data release at 2030 (GMT+8)

19 August – U.S. FOMC meeting minutes release at 0200 (GMT+8)