EUR/USD: Momentum Aftermath Needs Acceleration

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EUR/USD: Momentum Aftermath Needs Acceleration. Short-term bias is still negative so far and threatens breakouts below the psychological level of 1.2000. Moving below Kijun-sen H4 (now at 1.2079) and slumping quite well below Kijun-sen Daily (now at 1.2175), the Euro is still depressed versus the US Dollar on Thursday (04/February). Investors are likely to be cautious ahead of the U.S. employment report to be released tomorrow, amid rumors that U.S. President Joe Biden's proposed $1.9 trillion stimulus package has been submitted to the U.S. Congress.

Support zone 1.2011/1.2000 is under threat. In bearish scenarios, breakouts and accelerations under that area risk triggering additional momentum to target the nearest Daily support located at 1.1966 and 1.1911.

But perhaps interesting to watch, the Volume indicator shows a decrease in the intensity of selling action in the last 4 trading days. So, if you are still holding a sell position EUR / USD, say from the area of 1.2115 or above, it may be worth shifting the Position Stop Loss (SL) to a level that can already provide a profit quite profitable.

For bullish scenarios, it may be relatively safer to wait for confirmation of daily/H1 candlestick closures above 1.2058 or 1.2079. On the other hand, when considering the Volume indicator, looking for a buy position in the range of 1.2011/1.2000 becomes an option that is also quite attractive. This scenario requires observation of price action or candle pattern to prepare position switch in anticipation of bearish momentum below the psychological level of 1.2000.

Let's not forget that tomorrow we will be dealing with a U.S. employment report that is expected to have a high impact on market sentiment. Also, the development of U.S. fiscal stimulus is worth taking into account.

As of 1:30 p.m., EUR/USD was in the range of 1.2012, down 0.19 percent from the close of trading yesterday.