EUR/USD Current Price: 1.1334

  • US employment report disappointed in May with just 75K jobs added.
  • Dollar to remain under pressure until Fed's meeting sheds light over the future monetary policy.

The EUR/USD pair soared to 1.1347 last Friday, as a dismal US employment report fueled speculation of an upcoming rate cut in the US, pressuring further the greenback. According to official data, the US economy added 75K new jobs in May, well below the 185K expected, while April figure was downwardly revised to 224K vs. the previous estimate of 263K. The unemployment rate held steady at 3.6%, with the labor force also unchanged at 62.8%, despite an uptick expected. Wages grew by 0.2% MoM and by 3.1% YoY, both within the recent levels, although below the market's forecast. Less relevant yet still concerning, April Wholesale Inventories were up 0.8%. Data supported fears of slowing economic growth, as jobs' creation is the second lowest in almost two years. The shared currency rose despite earlier in the day, German data disappointed, with Industrial Production falling 1.9% in the month, and by 1.8% when compared to a year earlier.

The market has already digested that talks between China and the US collapsed, and news in that front are expected by the ends of June, within the G-20 meeting that will take place in Japan. But it is still to react to US President Trump's announcement late Friday. Trump tweeted that the US reached an agreement with Mexico, therefore suspending tariffs indefinitely. Monday will be a holiday in several European countries, with no relevant data scheduled in the Union, while the US will only release April JOLTS Job Opening.

The EUR/USD pair settled around 1.1330, bullish according to the daily chart, as it advanced above its 100 DMA for the first time since mid-March, with the 200 DMA in the 1.1360 region providing an immediate dynamic resistance. Technical indicators in the mentioned chart head sharply higher within positive levels, and near overbought readings, skewing the risk to the upside. Moreover, the pair broke above a daily descendant trend line coming from September 2018 monthly high, with bulls hardly giving up as long as the price remains above it. Shorter term, and according to the 4 hours chart, the pair is also poised to extend its gains, as it bounced from a bullish 20 SMA, now a few pips below the broken trend line, while technical indicators remain near their recent highs, having lost part of their bullish strength.

Support levels: 1.1320 1.1280 1.1250

Resistance levels: 1.1360 1.1400 1.1445

View Live Chart for the EUR/USD

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: Adds 8 pips in Asia, remains trapped in a bear flag

EUR/USD picked up a bid at 1.1084 at 00:00 GMT and rose to 1.1092 a few minutes before press time. As of writing, the currency pair is trading at 1.1089. The buyers failed to keep the pair above 1.11 for the third straight day on Wednesday.

EUR/USD News

GBP/USD: Struggles between 10/21-DMA amid bullish MACD

Despite reversing from the 21-day simple moving average (DMA), GBP/USD remains above 10-DMA as it trades near 1.2134 during Asian session on Thursday. Supporting the pair’s upside is a bullish signal by 12-bar MACD.

GBP/USD News

USD/JPY: Weaker below 106.50, focus on T-yields ahead of Powell

USD/JPY trades weaker below the 106.50 level, tracking the negative S&P 500 futures and a cautious sentiment on the Asian equities, as attention shifts from the FOMC minutes to the Fed's Powell speech for fresh direction. 

USD/JPY News

USD/CNH: Rallies, confirms falling channel breakout

Another wave of CNH selling could soon hit the market as the pair technical charts are reporting a bullish breakout. For instance, the pair has jumped 0.22% to levels above 7.08 today, confirming an upside break of the falling channel on the 4H chart.

Read more

Gold: Trapped in a symmetrical triangle

Gold is trapped in a narrowing price or a symmetrical triangle pattern, according to the 4-hour chart. The yellow metal rose to a six-year high of $1,353 per Oz on Aug. 13 and has charted lower highs and higher lows ever since.

Gold News

Majors

Cryptocurrencies

Signatures