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EUR/USD Forecast 1 Apr 2016

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EUR/USD Forecast 1 Apr 2016
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NFP will determine the further movement of the EUR/USD

Yesterday the pair EUR/USD was able to reach a high of 1.1411. Last time the pair EUR/USD reached this maximum in October 2015.

However, the pair EUR/USD failed to gain a foothold at this level and finished trading at 1.1378. The EUR/USD may try to do it today. If we see the disappointing data on the Non-Farm Payrolls, the pair could rise to the 1.1470 area, and possibly to 1.15.

It should be noted that the likelihood of this scenario is high, especially when the Euro is oversold. EUR/USD will be able to return to the area of 1.1320 and below only in case of strong nonfarm data.

The growth should be recorded not only in NFP but in the average hourly earnings. If at least one of the components would be below expectations, the market will actively consider the fact that we should not expect rate hikes until the end of the third - the beginning of the fourth quarter.

How to trade

We would buy CALL options if the pair EUR/USD rises above the level of 1.1401.

Asset: EUR/USD
Direction: CALL
Target price: 1.1401
Close price: 1.1389
Expiry time: 20:00 GMT

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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