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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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EURUSD Watch: NFP Results vs ISM PMI Services

Article By: ,  Market Analyst
May 3, 2024 1:52 PM

The volatility rippled across the charts on January 5th, 2024, following the consecutive release of the non-farm payroll and the ISM Services PMI results, leaves a question mark for today’s scenario. For today:

  • U.S. non-farm payroll results dropped towards 175K, adding bearish pressures to the U.S Dollar Index and bullish pressures upon the EURUSD charts

  • ISM PMI Services are expected to increase further into industrial expansion metrics, from 51.4 to 52. Being a leading economic growth metric alongside the ISM PMI Manufacturing Index, the strength of its result can either amplify or reverse those imposed by today’s NFP results.

EURUSD - 1H Time Frame – 05/01/2024

With direct negative correlation to the U.S Dollar Index, the previous impact of the mentioned indicators stirred a volatility range of 72 pips on the EURUSD chart, giving caution to the release once again. 

EXY – 4H Time Frame – Logarithmic Scale

Looking at the Euro Currency Index (EXY), a potential breakaway gap is under formation, jumping above the previous end of April high, which happens to be a zone of significant support and resistance since November 2023. Regarding the chart’s smoothed relative strength index, the momentum indicator surpassed the neutral 50 zone, confirming further bullish trends.

 

EURUSD – 4H Time Frame – 5/03/2024

The EURUSD jumped amid negative non-farm payroll results, surpassing the significant 1.0750 zone, and heading towards the potential resistance levels near 1.0830 and 1.0880 highs consecutively. The smoothed relative strength index is in a strong bull mode; however, if bearish momentum enters the play, prices can potentially hold support near 1.0750 again.

The upcoming ISM Services PMI result is watched closely for a momentum addition or reversal to the current chart trends. 

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