EUR/USD key levels to watch ahead of NFP

EUR/USD, continues to consolidate above the 1.4260 area ranging between 1.4450 and 1.4260.

Since the pair has remained within this range for over two weeks, a break out post-announcement seems imminent.

On the chart below. I have denoted, in orange, key levels traders need to watch.

To the downside, a break below 1.4200 would open next target at 1.4119, a 38.2% Fib. retracement from move 1.2457 to 1.5146. We could potentially see a small rebound from here, although this level could be easily breached as NFP moves can surpass 300 pip ranges.

Following this level, we find the 1.3801 level, a 50.0% Fib. retracement from move 1.2457 to 1.5146. At this point, we would feel more comfortable attempting long positions as previous consolidation patterns in this area may find demand building up.

To the upside, a break above 1.4460 finds strong resistance levels at 1.4677 and 1.4789. Subject to the data, both levels would likely have supply.

Traders should analyze any revisions to prior, the unemployment rate, as well as monitor equity futures reaction.

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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