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EUR/USD Price Analysis: Parabolic rally will come under scrutiny ahead of the NFP event

  • EUR/USD volatility coming up in the NFP event.
  • The single currency's parabolic rally could be met with a sharp correction.

As per the prior analysis, EUR/USD Price Analysis: Bulls take on a critical hourly resistance in New York trade, the single currency moved in on the initial targets and has run with it. 

EUR/USD, weekly chart, prior analysis

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At the start of the week, the M-formation was highlighted as an upside risk which has played out and beyond neckline as follows:

We now head into the US Nonfarm Payrolls as the next likely catalyst following Thursday's hawkish twist at the European central bank and the following illustrates the landscape from a lower time frame perspective. 

EUR/USD H4 chart

The price action is parabolic and it would be expected to be followed by a sharp decline in value. The 4-hour 50% mean reversion level is compelling for the confluence it has with prior resistance near the 1.1360's. The NFP event could be the catalyst for a shift through the imbalance of Thursday's with volatility expected in and around the event. 

US NFP Preview: Goldman Sachs expects large, temporary drag from Omicron on the order of 500-1000K

Goldman Sachs (GS) cites survey data indicating a surge in absenteeism during the month to expect Omicron-led temporary declines in the US Nonfarm Pay
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USD/CAD Price Analysis: Keeps pullback from 50-DMA above 1.2620 key support

USD/CAD remains pressured around 1.2680 during Friday’s Asian session, following the previous day’s U-turn from 50-DMA. Thursday’s pullback also marke
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