EUR/USD Current price: 1.1058
- US private job creation rose by more than anticipated in September, according to ADP.
- The US Dollar benefits from a risk-averse environment amid Middle-East tensions.
- EUR/USD gains bearish traction in the near term, aims to test the 1.1000 mark.
The EUR/USD pair recovered from a weekly low of 1.1045 posted on Tuesday, with market players maintaining a cautious stance amid United States (US) macroeconomic data. The focus this week is on US employment figures, with several related figures scheduled throughout the week ahead of the Nonfarm Payrolls report to be out on Friday.
The country released the JOLTS Job Openings report on Tuesday, which showed job openings unexpectedly jumped by 329K from an upward revised 7.711 million in July to 8.040 million in August, providing near-term support to the US Dollar. Additionally, the US just published the ADP survey, which showed the private sector added 143K in September, better than the 120K anticipated. The August reading was upwardly revised from 99K to 103K.
Earlier in the day, the Eurozone reported that the August Unemployment Rate held steady at 6.4%, as expected.
Meanwhile, the USD benefited from a risk-averse environment amid geopolitical tensions in the Middle East. Cross-attacks between Israel and Lebanon escalated over the weekend and continue to affect financial markets. Oil prices jumped, pushing investors away from high-yielding assets and favoring USD gains in the near term.
EUR/USD short-term technical outlook
From a technical point of view, the EUR/USD pair is bearish, trading at the lower end of Tuesday’s range. The daily chart shows the pair trades below a flat 20 Simple Moving Average (SMA), currently providing dynamic resistance in the 1.1100 price zone. The 100 and 200 SMAs, in the meantime, have lost their upward strength but hold far below the current. Finally, technical indicators maintain their bearish slopes, gaining downward traction below their midlines, which is usually a sign of additional losses ahead.
In the near term, according to the 4-hour chart, the risk skews to the downside. A firmly bearish 20 SMA is coming close to cross directionless 100 and 200 SMAs to the downside, a strong selling signal. Even further, technical indicators grind lower after a consolidative stage within negative levels, anticipating another leg south without confirming it just yet.
Support levels: 1.1040 1.1000 1.0960
Resistance levels: 1.1110 1.1150 1.1200
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
Editors’ Picks
EUR/USD breaks below 1.1000 on stellar NFP
The buying bias in the Greenback gathers extra pace on Friday after the US economy created far more jobs than initially estimated in September, dragging EUR/USD to the area of new lows near 1.0950.
GBP/USD breaches 1.3100 after encouraging US Payrolls
The continuation of the uptrend in the US Dollar motivates GBP/USD to accelerates its losses and breaches 1.3100 the figure in the wake of the release of US NFP.
Gold rebounds from daily lows and flirts with $2,670
Following a post-NFP dip to the $2,640 region, Gold prices now embarks on an acceptable rebound and retest the area of $2,670 per ounce troy despite the marked advance in the US Dollar and rising US yields across the board.
US Payrolls surge in September, as 50bp rate cut ruled out
US payrolls data surprised on the upside in September, rising by 254k, smashing expectations of a 150k rise. The unemployment rate fell to 4.1% from 4.2%, average hourly earnings increased to a 4% YoY rate and there was a 72k upwards revision to the previous two months’ payrolls numbers.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.