EUR/USD corrects to near 1.0230 after displaying exhaustion signals, US NFP in focus


  • EUR/USD has been dragged to near 1.0230 as DXY is picking bids ahead of the US NFP.
  • US job market will increase at a diminishing rate as employment levels have reached their full capacity.
  • The downbeat Retail Sales and German Factory Orders indicate a slowdown in Eurozone ahead.

The EUR/USD pair has given a downside break of the inventory distribution formed in a narrow range of 1.0243-1.0254 in early Tokyo and has corrected to near 1.0230. The major is displaying exhaustion in the upside momentum and is likely to extend its correction as the US dollar index (DXY) has attempted a rebound after printing a low of 105.70 on Thursday.

As per the market consensus, the additional jobs created in the month of July may trim to 250k against the prior release of 372k.  No doubt, rising interest rates have compelled the US corporate players to invest with such precautions. Costly dollars have forced them to move further with the safest investments only. Therefore, a slump in job creation was highly expected.   

In spite of that, the DXY is performing well ahead of the labor market data. As investors are aware of the fact that the US economy is maintaining full employment levels consecutively for the past six months. Therefore, room for more employment generation is less and an increment in jobs with a decreasing rate should be welcomed by the market participants.

On the eurozone front, a slump in the overall demand is becoming a major concern for the shared currency bulls. Earlier, the Retail Sales data landed at -3.7%, lower than the expectations of -1.7% and the prior release of 0.4%. In times, when price pressures are sky-rocketing, the Retail Sales data should have reported an uptick, however, a slump in the same indicates that the overall demand is extremely poor.

Now, the downbeat German Factory Orders data has bolstered the slowdown claims. The economic data has squeezed by 0.4% vs. the expectation of a squeeze by 0.8% and the prior squeeze of 0.2% on a monthly basis.

EUR/USD

Overview
Today last price 1.0234
Today Daily Change -0.0012
Today Daily Change % -0.12
Today daily open 1.0246
 
Trends
Daily SMA20 1.0161
Daily SMA50 1.0387
Daily SMA100 1.0571
Daily SMA200 1.0936
 
Levels
Previous Daily High 1.0254
Previous Daily Low 1.0154
Previous Weekly High 1.0258
Previous Weekly Low 1.0097
Previous Monthly High 1.0486
Previous Monthly Low 0.9952
Daily Fibonacci 38.2% 1.0216
Daily Fibonacci 61.8% 1.0192
Daily Pivot Point S1 1.0182
Daily Pivot Point S2 1.0119
Daily Pivot Point S3 1.0083
Daily Pivot Point R1 1.0281
Daily Pivot Point R2 1.0317
Daily Pivot Point R3 1.0381

 

 

 

 

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