EUR/USD sticks to gains near 1.1715 ahead of US NFP


  • Bulls take a breather as European equities pare back gains.
  • Manages to hold above 1.1700 as the focus shifts to the US NFP data.

The EUR/USD pair failed to sustain at higher levels, now easing back towards the 1.17 handle, as the risk-on rally in the European equities stalled on the back of China’s retaliation to the US tariffs.

With the US-China trade war officially underway, markets turn jittery after the initial positive reaction, as they evaluate the impact of the tariffs war on the global economic outlook. This explains the consolidative mode seen in the US dollar across its main competitors, which keeps the upside capped in the spot.

Also, increased cautiousness ahead of the US payrolls data also keeps a lid on EUR/USD’s rebound. An upbeat US jobs report could offer the much-needed respite to the USD bulls, triggering a sell-off in the pair.

“The US economy is expected to have added 195K new jobs in June, the unemployment rate is seen at record lows of 3.8%, while as usual, wages are barely expected to show signs of life, up monthly basis 0.3% and by 2.8% YoY,” FXStreet’s Chief Analyst, Valeria Bednarik noted.

EUR/USD Technical Levels

According to Nenad Kerkez, Head of Technical Analysis and Trading at Elite CurrenSea, “The EUR/USD is showing higher highs and higher lows that indicates a bullish zigzag. The MACD is also positive, meaning we have a confluence of price and technical indicator. However, today is NFP with the Unemployment rate and Average Hourly Earnings data. This single event might be volatile as always, so we need to focus on breakouts. Above 1.1735 targets are 1762 and 1788 with a potential for 1.1820. However, a drop below 1.1670 should target 1.1653 and 1.1620 with a potential for 1.1575. The price action and direction is a very data dependent.”

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.

Feed news

GME stock positioned for another short squeeze

Get the full analysis and chart in our Insights. Upgrade to Premium today    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD loses 1.21 as the dollar extends its gains

EUR/USD has dipped below 1.21, some 70 pips down on the day as the dollar recovers alongside Treasury yields. US Consumer Sentiment beat estimates with 86.4 points. 

EUR/USD News

GBP/USD retreats amid UK GDP miss, reopening concerns

GBP/USD is hovering around 1.4150, down on the day. UK GDP missed with 2.3% in April and a four-week delay to Britain's reopening is speculated. The greenback is gaining some ground.

GBP/USD News

XAU/USD drops back below $1900, as US dollar rebounds ahead of data

Gold price has retraced below the $1900 mark once again, having tested Tuesday’s high near $1903. The latest leg down in gold price comes on the back of a tepid bounce staged by the US dollar, as the Treasury yields trim losses across the curve.

Gold News

Ethereum price prepares for a bullish weekend, targeting $3,000

Ethereum price seems prime to revisit $3,000. Although ETH faces resistance at $2,300, the upswing seems imminent. A downswing below $2,000 could invalidate the bullish thesis. 

Read more

Hot Inflation is warming the seat for the June FOMC

Americans are seeing the fastest price increases since their seventh-graders were born as inflation builds into the US economy from the disruptions of the pandemic lockdowns. Core CPI at 3.8% is the steepest gain in 29 years.

Read more

Forex MAJORS

Cryptocurrencies

Signatures