The EUR/USD pair saw an uptick on Wednesday, bouncing back from recent losses and finding support around 1.1050. Despite the positive momentum in the middle of the week, the pair is still struggling to break above the 1.1100 level. Investors are closely watching US jobs data, especially in anticipation of Friday’s US Nonfarm Payrolls (NFP) report.
On the European side, the key data release this week is the Retail Sales report for July, which is expected to show a modest recovery of 0.1% year-on-year. Meanwhile, US JOLTS Job Openings for July fell short of expectations, indicating a slowdown in the labor market.
With the Fed likely to start cutting interest rates in September, market sentiment is leaning towards a 50 bps rate cut. However, there is still a possibility of a smaller 25 bps cut, according to CME’s FedWatch Tool. The upcoming NFP report will be crucial in shaping market expectations regarding the extent of the rate cut.
EUR/USD Price Forecast
Although the EUR/USD pair faces technical resistance, buyers are still active in supporting the price above the 200-day Exponential Moving Average (EMA) at 1.0845. Despite the bullish sentiment, there is a growing bearish pressure as shorts target levels above the 50-day EMA at 1.0956.
EUR/USD Daily Chart
The Euro is the currency used in the Eurozone, comprising 20 European Union countries. It is the second most traded currency in the world after the US Dollar, with EUR/USD being the most traded currency pair globally. The European Central Bank (ECB) plays a crucial role in managing the Eurozone’s monetary policy, with interest rates being a key factor in determining the Euro’s value.
Overall, the EUR/USD pair’s performance is closely linked to economic data releases, central bank policy decisions, and market sentiment. Investors should pay attention to upcoming reports and events that could impact the currency pair’s movement.