This week's NFP data is expected to reveal the slowest rate of U.S. jobs growth in over a year, while the ECB is likely to adopt a more hawkish policy stance. Both factors could prompt a minor bullish pullback on the EURUSD, though the pair remains in a very strong downtrend.
If the price action manages to break out above the 20-day MA (in red) and middle line of the descending channel, the pullback could then head towards the 23.6 per cent Fibonacci retracement level at 1.12069. The latter is currently converging with the upper limit of the channel, the 50-day MA (in green) and 100-day MA (in blue).
That is why bears could potentially look for an opportunity to enter short around the 23.6 per cent Fibonacci on the expectations for the continuation of the broader downtrend from there.
If the price action manages to break out above the 20-day MA (in red) and middle line of the descending channel, the pullback could then head towards the 23.6 per cent Fibonacci retracement level at 1.12069. The latter is currently converging with the upper limit of the channel, the 50-day MA (in green) and 100-day MA (in blue).
That is why bears could potentially look for an opportunity to enter short around the 23.6 per cent Fibonacci on the expectations for the continuation of the broader downtrend from there.
