Two trades to watch: EUR/USD, WTI crude oil

EUR/USD holds 1.2050 ahead of NFP numbers. WTI crude oil extends gains after strong US and Chinese data.

Charts (1)

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. 

What to expect from the NFP

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. 

Learn more about NFP's

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. 

Learn more about trading 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


More from Trade Ideas

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.