Two trades to watch: EUR/USD, WTI crude oil
Fiona Cincotta May 7, 2021 3:00 AM
EUR/USD holds 1.2050 ahead of NFP numbers. WTI crude oil extends gains after strong US and Chinese data.
EUR/USD holds 1.2050 ahead of the non-farm payroll
The EUR/USD holds above 1.2050 in cautious trade ahead of the non farm payroll and a speech by ECB President Christine Lagarde.
German industrial production +2.5% MoM in March vs -1.9% in Feb
The Eurozone’s economy appears to have turned a corner after strong data cross the week.
US Dollar picking up invetsors look to NFP for further clues.
Where next for EUR/USD?
EUR/USD continues to trade above its weekly descending trendline and its 50 EMA on the 4 hour chart keeping the bulls hopeful and targeting 1.21.
Resistance can be seen at 1.2080 high May 3rd. A break through here could see 1.21 the round number and 1.2150 the yearly high come back into focus.
On the flip side, 1.2040 sees support from the 20 & 50 EMA. A break below this level could see the bears gain traction.
Oil rises after upbeat US & China data
Oil is on the rise for a second straight session following upbeat data from the US & China.
US initial jobless claims declined for a 5th straight week to the lowest post pandemic level.
China, the worlds’ largest oil importer saw the Caixin services PMI for April was 56.3, whilst exports grew 32.3% YoY.
Crude imports to China jumped 7% in the first 4 months of 2021
Strong NFP data could boost demand expectations further and lift oil.
Where next for WTI crude oil?
Oil price trade around multi-week high. It trades above its ascending trendline dating back to late April. It also trades above its 50 EMA on the 4 hour chart, however it has just slipped below its 20 EMA at 65.10
The bulls remain in control whilst the price holds above 64.40 the 50 EMA and high 20 April. Beyond here support can be seen at 63.00.
On the upside, near term resistance can be seen at 65.90 yesterday’s high ahead of 66.70 high May 5th.
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