Today, the US Nonfarm Payrolls report is on tap. Unemployment is expected to decline to 3.5% from 3.6%. Apart from that, the economy is likely to add 385,000 new jobs.

The EUR/USD pair rebounded from the level of 1.0636, which had previously been a swing low logged in spring 2020. Now, it is acting as a resistance level which positively impacted the volume of short positions. After the rebound, the pair returned to the support level of 1.0500.

The RSI indicator is located below 30/50 moving averages on the H4 and D1 charts. It means that traders are actively opening short positions.

The Alligator indicator shows that the moving averages have completed the intersection with a downward movement on the 4H chart. It gives a sell signal.

Outlook

The bearish trend persists. If the price fixes below 1.0500 on the 4H chart, there could be a sharp increase in the volume of short positions. In this case, the downtrend is likely to be extended to a swing low of 2016.

Otherwise, the pair may be stuck in the 1.0500/1.0600 range, delaying the start of the downtrend.

The complex indicator analysis generates a sell signal on the short, intraday, and medium-term charts.