EUR/USD has lowered to levels not seen since October. With markets overdoing Non-Farm Payrolls forecast, an opportunity to buy may loom, Yohay Elam from NDDFX reports.
“Markets tend to exaggerate and front-run events – the Non-Farm Payrolls in this case. The economic calendar is pointing to an increase of 160,000 positions in January and the US dollar is stretched into the event and even a beat with 220,000 may be insufficient to send EUR/USD higher.”
“Ahead of the weekend, traders may want to book profits on short positions and squeeze to the upside cannot be ruled out.”
“The world’s most popular currency pair still has time to correct before the event, but ranges tend to be tight in the hours leading to the Non-Farm Payrolls release.”