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EUR/USD holds above 1.0750 to start the week

EUR/USD holds above 1.0750 to start the week

EUR/USD trades in positive territory above 1.0750 in the European session on Monday. The US Dollar struggles to find demand following Friday's disappointing labor market data and helps the pair hold its ground. 

EUR/USD News

Fundamental

 

EUR/USD fluctuates in a tight channel slightly above 1.0750 early Monday after closing the previous week in positive territory. The technical picture suggests that the pair could stay bullish in the near term.

The disappointing data releases from the US caused the US Dollar (USD) to weaken against its rivals on Friday and helped EUR/USD stretch higher ahead of the weekend.

Nonfarm Payrolls (NFP) in the US rose 175,000 in April, the Bureau of Labor Statistics reported. This reading fell short of the market expectation of 243,000. Additionally, the Unemployment Rate edged higher to 3.9% from 3.8%. Meanwhile, the ISM Services PMI dropped to 49.4 in April from 51.4 in March, pointing to a contraction in the service sector's business activity.

Eurostat will publish Producer Price Index (PPI) data for March later in the session, which is unlikely to trigger a noticeable market reaction. The US economic docket will not offer any high-tier data releases.

Investors will pay close attention to comments from Federal Reserve (Fed) officials. Federal Reserve Bank of Chicago President Austan Goolsbee told Bloomberg TV on Friday that employment numbers were solid. Fed Board of Governors member Michelle W. Bowman noted that there were upside risks to inflation outlook and added that she was open to raising rates if data showed a stall or a reversal in inflation progress. 

In case Fed policymakers deliver hawkish remarks, the USD could stage a rebound and weigh on EUR/USD.

In the meantime, US stock index futures were last seen trading mixed on the day. A bullish opening in Wall Street could make it difficult for the USD to find demand in the American session.

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EUR/USD holds above 1.0750 to start the week

EUR/USD holds above 1.0750 to start the week

EUR/USD trades in positive territory above 1.0750 in the European session on Monday. The US Dollar struggles to find demand following Friday's disappointing labor market data and helps the pair hold its ground. 

EUR/USD News

Technical

EUR/USD climbed above the 200-period Simple Moving Average (SMA) for the first time in three weeks on Friday and closed the last four 4-hour candles above that level. Moreover, the Relative Strength Index holds comfortably above 60, reflecting the bullish bias.

On the upside, 1.0790-1.0800 (Fibonacci 50% retracement of the latest downtrend, static level) aligns as first resistance before 1.0830 (Fibonacci 61.8% retracement) and 1.0900 (Fibonacci 78.6% retracement).

Immediate support is located at 1.0750 (200-period SMA, Fibonacci 38.2% retracement) before 1.0720 (20-period SMA, 50-period SMA) and 1.0700 (Fibonacci 23.6% retracement).

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EUR/USD holds above 1.0750 to start the week

EUR/USD trades in positive territory above 1.0750 in the European session on Monday. The US Dollar struggles to find demand following Friday's disappointing labor market data and helps the pair hold its ground. 

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