Technical Setup on EURO but CAUTIOUS ahead of NFP

Technical Analysis

After a modest rally, this week following Dollar weakness the Euro has a confluence of important technicals indicating possible weakness.

1) A retest of previous channel structure which has acted as important support and resistance over 3 months.

2) A retrace to the golden fib ratio 0f 50-61.8% (1.19200 - 1.16350)

3) Momentum divergence which can also be seen as playing out well earlier this week

4) Looks to currently be printing a bearish pin bar candlestick pattern

5) The daily 20MA lines perfectly as resistance

Fundamental Analysis

With NFP tomorrow, I will be hesitant on placing a significantly large trade size at the moment

However, I am expecting further risk-off sentiment heading into November, as investors look to reduce exposure on assets shifting towards currencies and Gold which could indicate further EUR bearishness into the month

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