EUR/USD Price Analysis: Slumps but stays around 1.0710s after upbeat US data

The EUR/USD is set to finish the week almost flat, though with a minimal loss,
Risk-aversion boosted the appetite for the greenback, though it weighed on the EUR/USD.
EUR/USD Price Forecast: To consolidate in the 1.0627-1.0787 range, but downside risks remain.

Christian Borjon Valencia FXStreet

The EUR/USD edges lower as the New York session winds down, trimming some of Thursday’s gains, but remains above the 1.0700 threshold due to the 50-day moving average (DMA) acting as support around 1.0718. At the time of writing, the EUR/USD is trading at 1.0719.

Dampened sentiment weighed on the EUR, and the USD rose

US equities finished the session with hefty losses, between 1.05% and 2.47%. Positive US jobs report further cemented the case for a US Federal Reserve rate hike of 50 bps in the June meeting, despite worries that the US central bank could cause a recession.

On Friday, the EUR/USD opened near the session highs at around 1.0745 and edged up towards 1.0760, shy of the R1 daily pivot at 1.0782. However, traders dragged the EUR/USD below the daily pivot in the European session and pierced the 50-hour simple moving average (SMA) at 1.0712. Nevertheless, the EUR/USD seesawed on the release of the US Nonfarm Payrolls report to finally settling down at current price levels.

EUR/USD Price Forecast: Technical outlook

The EUR/USD remains downward biased, despite the major reaching a fresh weekly high at 1.0787. The Relative Strength Index (RSI), in bullish territory, begins to drift lower. Hence, the EUR/USD might consolidate between the 1.0627-1.0787 range before resuming downwards.

The EUR/USD 4-hour chart depicts the major range-bound. However, the pair is back above the 50-simple moving average (SMA) at 1.0716, consolidating near the daily pivot, which sits at 1.0714.

Upwards, the EUR/USD’s first resistance would be June 3 daily high at 1.0764. A breach of the latter would expose May’s 30 high at 1.0787, followed by the 1.0800 mark. On the other hand, the EUR/USD first support would be the 1.0700 figure. Break below would expose June’s 1 swing low at 1.0627, followed by the 200-SMA at 1.0618.

EUR/USD

Overview
Today last price	1.0718
Today Daily Change	-0.0028
Today Daily Change %	-0.26
Today daily open	1.0746

Trends
Daily SMA20	1.0602
Daily SMA50	1.0726
Daily SMA100	1.0968
Daily SMA200	1.1239

Levels
Previous Daily High	1.075
Previous Daily Low	1.0645
Previous Weekly High	1.0765
Previous Weekly Low	1.0552
Previous Monthly High	1.0787
Previous Monthly Low	1.035
Daily Fibonacci 38.2%	1.071
Daily Fibonacci 61.8%	1.0685
Daily Pivot Point S1	1.0677
Daily Pivot Point S2	1.0608
Daily Pivot Point S3	1.0572
Daily Pivot Point R1	1.0783
Daily Pivot Point R2	1.0819
Daily Pivot Point R3	1.0888

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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