EUR/USD Forecast: Looking at 1.1000 ahead of more US jobs data
|- US Dollar drops sharply as US yields tumble.
- Euro outperforms during Tuesday’s American session.
- EUR/USD posts the highest close in two months.
The EUR/USD posted the second-highest daily close in one year after breaking above 1.0930 boosted by a slide of the US Dollar amid lower US yields. The Euro outperformed during the American session while the US Dollar dropped following weaker-than-expected US data (Factory Orders and JOLTs).
The US Dollar Index posted the lowest daily close in two months, under 102.00, affected by a decline in US yields. The US 2-year Treasury yield fell to a one-week low of 3.82%, while the 10-year posted the lowest close since mid-September below 3.40%.
On Wednesday, the ADP Employment and the ISM Service PMI are due. The main event will be the official employment report on Friday. Across the pond, market participants continue to see more rate hikes coming from the European Central Bank, particularly as banking concerns ease. Data due on Wednesday includes German Factor Orders and Eurozone final S&P Global PMI.
EUR/USD short-term technical outlook
The EUR/USD looks on track to test the 1.1000 area while it holds above 1.0920. The daily chart shows the Euro firm well above key moving averages and RSI and Momentum moving north. Only a slide below 1.0800 would change the bullish outlook.
The 4-hour chart shows the pair with upward solid momentum while the RSI is flattening near 70. While above 1.0920, fresh highs seem likely. Above 1.0970, the next strong barrier is 1.1000/05, followed by the February high around 1.1035.
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