EURUSD heads into tonight's US jobs data with its chart interestingly placed

As the Daily chart above shows, yesterday's peak was neatly at the support of the recent major triangle pattern. If the Euro starts to fall away from here, it will constitute a classic pattern "retest" where old support acts as new resistance.

4 hour chart 

Non Farm Payrolls are notorious for creating market volatility so caution is required. However, a typical chart strategy is to use shorter term charts to create entry strategies for a longer term setup.

In this case, the 4 hour chart is showing signs of a potential head and shoulder pattern. The slow stochastic below the chart is also making lower highs.

A move back above the right shoulder would negate the head and shoulder. However a situation where price stays below this level and then breaks clearly below the 20 day moving average might indicate lower prices to come.

 

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.