EURUSD Daily Forecast: February 05

The EURUSD had a significant bearish momentum yesterday, break below 1.3750 key support area, bottomed and closed at 1.3723. This fact should lead us to further bearish scenario towards 1.3490 area. The bias is bearish in nearest term targeting 1.3580 area. Immediate resistance at 1.3750 – 1.3800 area. Break above that area should lead us into no trading zone but I prefer a bearish scenario at this phase with sell on rallies strategy as the bearish momentum seems very strong at this phase.

On fundamental side, we will have US NFP data today, which is expected at 10K. If the actual number is at least the same or even better than expected, the Euro should keep under heavy pressure. On the other hand, a worse than expected result may give some support to the Euro but overall the Dollar should still has the advantage as risk aversion seems to increase as stocks and gold are heading lower while Greenback strengthen.