After yesterday’s breakout, the EURUSD is currently range bound despite today’s NFP (Non-Farm Payroll) news release. Expectations were set at 217k for this morning’s event. However, even with results coming in worse than expected, at 173k, the EURUSD has failed to breakout. Prices are currently moving off of range resistance, which is found at the R3 at a price of 1.1165. If current market conditions persist, it opens the possibility of price action returning towards range support found today at 1.1079.
If prices continue to drop through values of support, traders will begin to look for a fresh breakout beneath today’s the S4 at a price of 1.1036. This would be considered a resumption of the pairs current trend, as price would be creating a new weekly low beneath this point. In this scenario, traders can start setting breakout targets towards a 1x extension of today’s 86 pip trading range. Alternatively, a breakout would be considered above the R4 found at 1.2079. A move to this value, would suggest an end to current market conditions while opening up the market to the creation of new higher highs.