EUR/USD on Edge as markets await key employment data

RoboForex Analysis Department RoboForex

EUR/USD remained under pressure on Wednesday, holding at 1.1629. The US dollar continues to draw support from difficulties in negotiations between the US and Iran, as well as a renewed escalation of tensions in the Middle East, which has increased demand for safe-haven assets.

According to the US Central Command, Iran launched ballistic missiles towards neighbouring states. In response, US forces carried out strikes on targets on Qeshm Island following alleged attacks linked to Tehran.

The ongoing conflict has kept energy prices elevated, fuelling concerns about inflation and reinforcing expectations that interest rates may remain higher for longer than previously anticipated.

Additional support for the dollar came from US labour market data. Figures released on Tuesday showed that job openings rose to their highest level in nearly two years in April, while layoffs declined. The data highlighted the resilience of the US economy despite ongoing geopolitical and economic uncertainties.

Investor attention is now turning to the ADP report, which may provide further insight into labour market conditions.

However, the key event of the week remains Friday’s Non-Farm Payrolls report, which could offer important clues regarding the Federal Reserve’s next policy steps.

Technical analysis

On the H4 EUR/USD chart, the pair is trading within a consolidation range around 1.1635, currently extending between 1.1605 and 1.1654. A move lower towards 1.1585 is likely. The MACD indicator supports this scenario, with its signal line below zero and pointing firmly downwards, reflecting.

On the H1 chart, EUR/USD has reached 1.1655 and is now moving lower towards 1.1585. A corrective rebound to 1.1636 may follow, before a further decline towards 1.1555. The Stochastic oscillator confirms this outlook, with its signal line around the 50 level and pointing downwards towards 20.

Conclusion

EUR/USD remains under pressure as geopolitical tensions and strong US labour market data continue to support the dollar. With the ADP report and Friday’s Non-Farm Payrolls release approaching, traders are likely to remain cautious. At the same time, technical indicators suggest a bias towards further short-term weakness in the pair.

Author

RoboForex Analysis Department

RoboForex

RoboForex Analysis Department provides timely market insights, expert technical analysis, and actionable forecasts across forex, commodities, indices, and equities.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.