By RoboForex Analytical Department
The US dollar has seen a significant increase in strength against the Euro, with the EUR/USD pair falling to 1.0770 by Monday morning. This movement is largely attributed to the recent release of robust employment sector reports in the US for January, which have shifted investor expectations regarding the Federal Reserve’s interest rate decisions.
The Nonfarm Payrolls (NFP) report for January revealed an impressive increase of 353 thousand jobs, far exceeding the anticipated 187 thousand. Additionally, December’s NFP figures were revised upwards to 333 thousand. Average hourly earnings also saw a notable rise of 0.6% month-over-month, doubling the forecast. These indicators suggest mounting inflationary pressures, potentially complicating the Federal Reserve’s plans to normalize interest rates.
The latest employment data effectively solidified market projections, especially after Federal Reserve officials indicated that a rate cut in March was unlikely, with adjustments possibly being postponed until May.
EUR/USD Technical Analysis
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
The H4 chart analysis of EUR/USD indicates that a corrective wave reaching 1.0896 has concluded. The market is now in the midst of a downward trend aiming for 1.0722. Upon achieving this target, a potential corrective movement to 1.0808 might occur, serving as a test from below, before the trend resumes its descent towards 1.0682. This outlook is supported by the MACD indicator, which is positioned below zero and indicates a continued downward trajectory.
On the H1 chart, the EUR/USD pair has established a consolidation range around 1.0808. Following a downward breakout, the declining wave is expected to proceed towards 1.0722. After reaching this milestone, a correction back to 1.0808 could be anticipated. The Stochastic oscillator, with its signal line currently above 50, suggests a potential climb to 80 before a decline to 20, reinforcing the bearish scenario outlined.
Disclaimer
Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
- Optimism surrounding the US-China summit in Beijing supported the markets May 15, 2026
- Gold Falls on US Inflation Concerns as Week Ends in Losses May 15, 2026
- The oil market may remain in a state of severe supply shortage until autumn May 14, 2026
- GBP/USD Under Policy Pressure: What Lies Ahead for the Prime Minister? May 14, 2026
- European stock markets declined amid rising concerns about an energy crisis May 13, 2026
- USD/JPY Continues to Climb Amid External and Domestic Pressures May 13, 2026
- You can change your emotions – but it’s a 2‑step process that takes some effort May 12, 2026
- The United States rejected Iran’s proposal for resolving the conflict. Oil prices surged again May 12, 2026
- EUR/USD on Edge: Middle East and China in Focus May 12, 2026
- The US stock indices continue to set new records. China’s exports showed a sharp increase May 11, 2026
