The Potential Impact of Non-Farm Payrolls on Major Currency Pairs

The Potential Impact of Non-Farm Payrolls on Major Currency Pairs

The USD Index (DXY) recently broke below the 103.00 support level, leading to a significant decline in the US dollar. This event, combined with the European Central Bank’s decision to maintain monetary conditions unchanged, has pushed the EURUSD pair to new multi-week highs near 1.0950. The charts suggest a bearish sentiment, with resistance trendlines and Fibonacci retracement levels indicating a potential downward movement. Analysts are forecasting a bearish direction for EURUSD with a target of 1.08568.

On the other hand, GBPUSD has surged to fresh 2024 highs above 1.2800, driven by increased selling pressure on the US dollar. However, the daily timeframe of GBPUSD is currently trading within a supply zone formed before the break of structure. The lack of significant confluences suggests a cautious approach towards predicting a bearish pressure on GBPUSD. Analysts’ expectations point towards a bearish direction with a target of 1.26629.

USDJPY, in contrast, has fallen to new five-week lows below the 148.00 support level, influenced by lower US yields and speculation about the Bank of Japan’s potential actions. The daily timeframe of USDJPY showcases an uptrend, with moving averages providing support for the price action. Combined with Fibonacci retracement levels, there is a possibility of the market regaining bullish momentum, potentially driven by the upcoming Non-Farm Payrolls data. Analysts are leaning towards a bullish direction for USDJPY with a target of 149.718.

Trading CFDs carries inherent risks, and proper risk management is essential for success in the market. To navigate these opportunities effectively, traders must conduct thorough research, due diligence, and manage their risks appropriately. The impending release of Non-Farm Payrolls data on March 8 is expected to have a significant impact on major currency pairs, influencing trading dynamics in the near future.

Technical Analysis

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