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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD holds near 1.0850 after US PMI data

EUR/USD holds near 1.0850 after US PMI data

EUR/USD holds steady at around 1.0850 in the second half of the day on Wednesday. The mixed US PMI data limits the US Dollar's gains but the risk-averse market atmosphere doesn't allow the pair to gather recovery momentum in the American session

EUR/USD News

GBP/USD recovers above 1.2900 as USD struggles to gather strength

GBP/USD recovers above 1.2900 as USD struggles to gather strength

GBP/USD trades modestly higher on the day above 1.2900 on Wednesday. The US Dollar struggles to build on Tuesday's gains following the mixed PMI data for July, allowing the pair to stay in positive territory in the second half of the day.

GBP/USD News

Gold extends recovery, advances above $2,420

Gold extends recovery, advances above $2,420

Gold builds on Tuesday's recovery gains and trades above $2,420 on Wednesday. The pullback seen in the 10-year US Treasury bond yield and the US Dollar after US PMI data help XAU/USD stretch higher during the American trading hours.

Gold News

Bitcoin price volatility expected amid speculation of Kamala Harris joining Bitcoin Conference with Donald Trump

Bitcoin price volatility expected amid speculation of Kamala Harris joining Bitcoin Conference with Donald Trump

Bitcoin price struggles around $66,000 on Wednesday. US spot Bitcoin ETFs experienced minor outflows on Tuesday, coinciding with the continued movement of Mt. Gox funds for repayment, which could exert downward pressure on Bitcoin's price.

Read more

July PMIs point to a very sluggish Eurozone recovery

July PMIs point to a very sluggish Eurozone recovery

This is another report that will not please the ECB. The July PMIs show that the eurozone economy is losing further momentum, as both the manufacturing and services sectors see activity slowing.

Read more

Majors

Cryptocurrencies

Signatures