By RoboForex Analytical Department
The EUR/USD pair remained stable around 1.1077 on Thursday morning, following steady growth in the previous session but still confined within a sideways channel. Investors are holding back and conserving their energy in anticipation of crucial employment data from the United States, which begins with today’s ADP private sector jobs report. Although the ADP report does not directly correlate with Friday’s highly anticipated Nonfarm Payroll (NFP) report, it provides a general sense of market sentiment.
Additionally, the market will closely watch today’s weekly unemployment claims data release, especially given the Federal Reserve’s focused attention on employment indicators. These releases are expected to heighten EUR/USD volatility as the day progresses.
The spotlight will soon shift to Friday’s key employment metrics, including non-farm payrolls, the unemployment rate, and average hourly earnings for August. These indicators are pivotal ahead of the September Fed meeting. Robust employment data may support a minimal 25 basis point rate cut by the Fed, whereas weaker labour market figures could heighten the possibility of a 50 basis point reduction.
EUR/USD Technical Analysis
Free Reports:
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.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
The pair is currently consolidating around the 1.1065 level. The market may test up to 1.1107 today, which is seen as a correction phase in the context of a broader decline. Following this potential rise, a further decline to 1.1060 is anticipated. A break below this level could signal a continuation of the downtrend, potentially reaching 1.1016. The MACD indicator supports this bearish outlook, with its signal line below zero and pointing downwards.
On the H1 chart, EUR/USD continues to consolidate around 1.1065. A slight dip to 1.1056 might occur, followed by an extension towards 1.1107 as part of a corrective pattern. Once this correction phase is completed, the downward trend is expected to resume. The Stochastic oscillator, currently just above 20, suggests a potential rise to 80, indicating room for short-term upward movement before continuing thebroader bearish trend.
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.
- Riksbank and Banxico cut interest rates by 0.25%. BoE, Norges Bank, and PBoC left rates unchanged Dec 20, 2024
- Brent Oil Under Pressure Again: USD and China in Focus Dec 20, 2024
- Market round-up: BoE & BoJ hold, Fed delivers ‘hawkish’ cut Dec 19, 2024
- NZD/USD at a New Low: The Problem is the US Dollar and Local GDP Dec 19, 2024
- The Dow Jones has fallen for 9 consecutive trading sessions. Inflationary pressures are easing in Canada. Dec 18, 2024
- Gold Holds Steady as Investors Await Federal Reserve’s Rate Decision Dec 18, 2024
- European indices under pressure amid political and economic weakness in the main countries of the bloc Dec 17, 2024
- EUR/USD Holds Steady Ahead of Crucial Federal Reserve Meeting Dec 17, 2024
- Canadian dollar falls to a four-year low. France loses credit rating Dec 16, 2024
- Japanese Yen Hits Three-Week Low as Bank of Japan Holds Rate Steady Dec 16, 2024
