The EURUSD is consolidating ahead of the March Non-Farm Payrolls in the U.S, similarly to the behaviour of the GBPUSD. Additionally, the pair's price action appears somewhat subdued today because of low trading activity (today is Good Friday, a major Holiday in Western Europe and the U.S.). Traders should keep in mind that low liquidity oftentimes leads to adverse fluctuations because of a lack of general direction in the market.
Even still, the publication of the unemployment data is likely to catalyse heightened price action when traders return. According to the preliminary market forecasts, the Bureau of Labour Statistics (BLS) is expected to post robust employment data for the previous month, which, in turn, should strengthen the dollar.
This presupposes the likely continuation of EURUSD's existing downtrend in the near future, driven by solid Non-Farm Payrolls data. Nevertheless, the EURUSD rebounded from a major Fibonacci Retracement level recently, which means that the accumulating bearish pressure is about to be checked. The end result is the creation of a bottleneck, which could see the price action break out in either direction. Even still, the prevailing fundamental outlook remains tilted to the downside.
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