EUR/USD Downtrend is ready after NFP!

7 ago 2023

On EURUSD, we have a well-established downtrend with the price reaching a supply zone around 1.1020 on Friday. After the Non-Farm Payrolls (NFP) release, there was a false breakout to the upside, which was quickly reversed, leading the price to retrace. In fact, the market has a strong long-term bullish trend, but on the H1 timeframe, it's evident that it's currently retracing towards the trendline zone. It could either touch the trendline and bounce back up for a long position or possibly break through it and retest before continuing downwards for a short position. The critical level of interest is 1.0960, and as a result, the price could potentially reach and touch the previous lower low in the zone around 1.09. Let me know your thoughts on this analysis. Have a great day! Regards, Nicola, CEO of Forex48 Trading Academy.