On the lookout for setups to trade throughout the U.S. NFP report release?

We gotchu!

In case you missed it, EUR/USD is chillin’ like a villain near a technical support level ahead of Uncle Sam’s employment updates.

EUR/USD 4-hour Forex Chart by TradingView

The euro is NOT having a terrific month to this point, as rising calls for one more European Central Bank (ECB) rate cut in October and increased tensions within the Middle East are limiting the demand for the common currency.

The U.S. dollar, then again, is gaining some pips back from its counterparts as shelter demand and easing calls for aggressive Fed rate cuts are bringing some bulls back to the Greenback’s yard.

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. If you happen to haven’t yet done your homework on the U.S. dollar and the euro, then it’s time to ascertain out the economic calendar and stay updated on day by day fundamental news!

EUR/USD, which turned lower from the 1.1200 area in late September, has fallen right down to the 1.1050 levels that had been a resistance zone in August and a support area in September.

Apart from that, the 1.1000 – 1.1050 area lines up with the underside of a spread pattern and the S2 (1.1021) Pivot Point within the 4-hour time-frame.

Are we a bounce within the making?

Today’s U.S. NFP report may provide a catalyst. Word around is that Uncle Sam will see weaker employment numbers in September, which could fan the flames of hopes for more jumbo rate cuts from the Fed and weaken the dollar.

Green candlesticks and sustained trading above 1.1050 sets EUR/USD up for a possible jump to the 1.1100 mid-range area if not the 1.1200 range resistance zone.

If today’s events end in a net bullish USD environment, nonetheless, then we could see EUR/USD trade below its range support. Look out for consistent trading below 1.1000, which could attract USD buyers and drag EUR/USD to potential inflection points like 1.0900 in the subsequent few days.

Good luck and good trading this setup!