During the Asian trading session, EURUSD exhibited a bearish trend, encountering a notable resistance zone between 1.05446 and 1.05569, as depicted within the confines of an orange rectangle. This specific area aligns with the lowest volume region within volume profile number 1 where there was a significant market imbalance marked by a substantial bearish candle with minimal wicks both at the top and bottom.
Conversely, a potential support zone is delineated between 1.04960 and 1.04738, highlighted in a red rectangle. This region lies beneath the value area of volume profile number 2 and corresponds to a point where a previous market imbalance occurred. It could be considered a strategic support zone by traders.
Today's trading session is accompanied by several significant economic events, including Average Hourly Earnings, Non-Farm Payrolls (NFP), and the Unemployment Rate. Economists have differing forecasts for these reports, with expectations of lower Non-Farm Payrolls, forecasted at 170K compared to the previous 187K. Meanwhile, there is a more favorable outlook for Average Hourly Earnings, with a forecast of 0.3% versus the previous 0.2%, and the Unemployment Rate, anticipated to be 3.7% compared to the previous 3.8%.
Incorporating a VWAP (Volume Weighted Average Price) plotted from the start of the week (Monday), EURUSD's current positioning stands above the VWAP's blue-colored line, suggesting a bullish bias. The price confronts a resistance zone delineated by an orange rectangle, situated between the first and second upper bands of the VWAP. Notably, the blue VWAP line and the initial lower band of the VWAP may act as a support zone. A breach below this lower band could signal a shift in favor of bearish momentum.
Forecast 170K vs Previous 187K
Forecast 3.7% vs Previous 3.8%
Forecast 0.3% vs Previous 0.2%
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