02.05.201406:16 Forex Analysis & Reviews: Technical analysis of EUR/USD for May 02, 2014

Long-term review

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Today's U.S. non-farm payrolls data will be watched closely by traders. The consensus estimate for today's figure stands at 215,000. Manufacturing picked up in April after consumer spending surged during the prior month, showing the U.S. economy is poised to expand in the second quarter. The Institute for Supply Management’s factory index rose to 54.9, the strongest so far this year, from 53.7 in March.

Technical view-

The pair has been in a consolidation for the last 2 weeks. It was facing selling pressure at higher levels. It is trading near the major resistance at 1.3906. This is the key level for the coming session. Until the pair crosses the 1.3906 on the downside, 1.36 is an open target. The RSI in the daily chart indicates limited upside and more noise in coming sessions. In Asia's trading session the pair is trading at 1.3865 levels. We expect a fall in price to start from Monday. A day close below the 1.38 levels, 1.36 is an open target for next week.

For intraday purpose, the pair will take support between 1.3856- 1.384 levels. We expect the pair to pull back to 1.3873, 1.3890 and 1.39. At higher levels traders can short. Sell on rise is the best strategy. On the down side, if the pair breaks the 1.3850, it will fall up to 1.3820 and 1.38 immediately.

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