1. Home
  2. Markets Updates
  3. Non-Farm Payrolls to Dictate EUR/USD's Next Big Move

Non-Farm Payrolls to Dictate EUR/USD's Next Big Move

7 June 2024

Share the article:

EURUSDH1_07_June.png

Past performance is not indicative of future results. All historical data, including but not limited to returns, volatility, and other performance metrics, should not be construed as a guarantee of future performance. 

EURUSD 1-Hour Timeframe 

 

The EURUSD, also known as Fiber, has been trading in an uptrend on the 1-hour timeframe since the low plotted on May 30, 2024. This uptrend began during a period of a busy economic calendar, which led to turbulent and volatile markets, followed by a recent phase of low volatility and indecisive market behavior. 

Upcoming key events include the much-anticipated Non-Farm Payroll, US Unemployment rate, and US Average Earnings data (both month-on-month and year-on-year), followed by a speech from ECB President Lagarde. These labor data releases will be closely monitored by the FED, and disappointing figures could prompt the FED to consider another rate cut. 

From a technical perspective, the anticipation is evident on the charts with very low volatility. The RSI has not reached overbought or oversold levels for the past three days as investors await today's labor data releases. Price action reflects this uncertainty, showing a slight uptrend but mostly calm, sideways movements. 

If the labor figures are weak, EURUSD buyers (USD sellers) might push prices higher, potentially leading to a breakout of the current range (orange square) and price channel. This move is in line with some technical like the moving averages, and could potentially reach the 1.09122 and even the 1.09390 levels. 

Alternatively, if the US labor data exceeds expectations, EURUSD bears may take control and drive prices lower to the 1.08555 and possibly the 1.08302 levels. A decisive break below the 1.08798 level with a substantial bearish candle would signal this breakout.  

Keep an eye on changing investor sentiment and shifting fundamentals. 

Summary: 

  • EURUSD has been in an uptrend on the 1-hour timeframe since May 30, 2024. 
  • Upcoming key events include Non-Farm Payroll, US Unemployment Rate, US Average Earnings data, and a speech from ECB President Lagarde. 
  • Market volatility is currently low, with RSI levels not reaching overbought or oversold conditions for the past three days. 
  • Weak US labor data could push EURUSD prices higher, potentially breaking the current range. 
  • Strong US labor data may drive EURUSD prices lower, signaling a bearish breakout. 
  • Key levels to watch are 1.09122 and 1.09390 on the upside, and 1.08555 and 1.08302 on the downside. 
     
IMPORTANT NOTICE: Any news, opinions, research, analyses, prices or other information contained in this article are provided as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and therefore, it is not subject to any prohibition on dealing ahead of dissemination. Past performance is not an indication of possible future performance. Any action you take upon the information in this article is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of this article.
RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail client investors 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.

Related articles

Top Economic Events to Watch | June 30 - July 4, 2025
30 June 2025
Get ready for market moves on July 3, 2025. Discover the three key U.S. economic reports—NFP, unemployment, and ISM Services PMI—that could drive stocks, bonds, the dollar, and more.

Read more

Gladys Eguia

NAGA Weekly Recap June 23 - 27, 2025
27 June 2025
Middle East tension cooled, stocks bounced, oil dropped—now all eyes on earnings and NFP. Is this just the calm before the next storm? Catch the full breakdown and what traders should watch next.

Read more

Gladys Eguia

Euro Rally Gains Momentum: 1.1700 in Sight, Fed in Focus
26 June 2025
Discover the latest EURUSD analysis as the pair eyes a breakout above 1.1700. Get insights on moving averages, RSI, Fed rate cut expectations, and potential bullish targets.

Read more