EUR/USD: Euro in range trading awaiting of fundamentals news's epitome

For a third day in a row the common European currency is under pressure after of 1/1 level which it was trading at the beginning of the week.

Macroeconomic news continues to cause concern for the path of the European economy as well as the todays announcement of the path of retail sales and Industrial production in the German economy had negative signs.

The Stock markets as early as yesterday have shown signs of fatigue after the three-day rally since the beginning of the week.

This in turn brings back to the fore the needs to buy the safe haven currency dollar. However, for the time being and in view of the announcement of the new jobs in the American economy, it has not taken on large dimensions.

The pair is currently in a mild downward channel but we see no significant chance of it widening significantly before the announcement later at noon of the unemployment rate in the US economy as well as new jobs numbers.

Average estimates point to an announcement of 250K increases and a significantly higher number will increase the chances that the Fed's decisions on rate hike prospects will remain hawkish.

On the contrary, some disappointing numbers will limit these prospects significantly. Despite the new pressures the pair continues to trade around the middle of the downtrend channel we have already mentioned several times, which has been in place since May 2021 and currently its edges are between the 0,95 and 1,0150 levels.

The overall picture continues to weigh on the European currency but as it has been shown the significant and strong reactions comes easily in the foreground.

Due to the major macroeconomic data we expect later in the day, increased volatility is the most likely scenario with the pair moving in both directions.

In such an environment I would prefer to maintain a waiting position until the announcements of NFP data .