EUR/USD: Bull cross confirmed, Fed rate cut odds rise ahead of US Nonfarm Payrolls


  • EUR/USD’s hourly chart is flashing a golden crossover. 
  • Rising odds of an October Fed rate cut are weighing over the US Dollar. 
  • The next big move in EUR/USD largely depends on the US Nonfarm Payrolls data, due at 12:30 GMT. 

EUR/USD is flashing green for the fourth straight day with key indicator flashing bullish conditions ahead of the all-important US Nonfarm Payrolls data. 

The currency pair is currently trading at 1.0978, representing 0.13% gains on the day, having hit a high of 1.0984 in the Asian trading hours. The pair eked out moderate gains in the previous three trading days. 

Bull cross 

The 50-hour moving average (MA) has crossed above the 200-hour MA, confirming a golden crossover – a bull market indicator. Hence, the pair looks set to extend the ongoing recovery rally from recent lows near 1.0880.

Fed rate cut odds rise

Traders are currently pricing more than 80% chance of 2019's third 25 basis point rate cut at the Federal Reserve’s Oct. 30 meeting. The probability stood at 64% on Wednesday and 40% on Monday, according to CME’s FedWatch tool.

The rising odds of an October Fed rate cut also support the bullish view put forward by the hourly chart golden crossover. 

Focus on the US Payrolls

The data due at 12:30 GMT is expected to show the economy added 145K jobs in September following 130K additions in August. Meanwhile, the Average Hourly Earnings are seen rising 3.2% year-on-year and the Unemployment Rate is forecasted to stay unchanged at 3.7%. 

A weak data would bolster the dovish Fed expectations, sending the US Dollar lower across the board. 

EUR/USD will likely come under pressure and possibly drop to 1.09 if the data beats estimates by a big margin, forcing markets to price out the prospects of a rate cut on Oct. 30.

Apart from the payrolls, the pair may also take cues from the US Trade Balance. Also, a number of Fed officials, including Chairman Powell, are scheduled to speak during the American trading hours. 

The US Dollar will likely pick up a strong bid if Powell downplays the need to cut rates on Oct. 30.

Technical levels

EUR/USD

Overview
Today last price 1.0978
Today Daily Change 0.0003
Today Daily Change % 0.03
Today daily open 1.0975
 
Trends
Daily SMA20 1.1001
Daily SMA50 1.1065
Daily SMA100 1.1154
Daily SMA200 1.1234
 
Levels
Previous Daily High 1.0999
Previous Daily Low 1.0941
Previous Weekly High 1.1026
Previous Weekly Low 1.0905
Previous Monthly High 1.111
Previous Monthly Low 1.0885
Daily Fibonacci 38.2% 1.0977
Daily Fibonacci 61.8% 1.0963
Daily Pivot Point S1 1.0944
Daily Pivot Point S2 1.0913
Daily Pivot Point S3 1.0885
Daily Pivot Point R1 1.1002
Daily Pivot Point R2 1.103
Daily Pivot Point R3 1.1061

 

 

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