EUR/USD Price Update: Euro Struggles to Extend Gains Beyond 1.1100 Mark
- Mixed European macroeconomic data fails to boost Euro
- Tepid US employment figures weigh on US Dollar
- EUR/USD battles to maintain momentum above key level
The EUR/USD pair reclaimed the 1.1100 level but faced resistance in extending gains as US employment data fell short of expectations. Following disappointing reports, the pair peaked at 1.1118, highlighting challenges in the labor market.
US data revealed a slowdown in hiring with the private sector adding only 99,000 jobs in August, well below the anticipated 145,000. Additionally, layoffs surged to a 15-year high of 75,891, signaling a cooling labor market and potential for a Federal Reserve interest rate cut.
On the European front, German factory orders saw a positive uptick in July, while Eurozone retail sales remained subdued. Attention now turns to the US ISM Purchasing Managers Index release later today.
EUR/USD Technical Analysis
Currently trading around 1.1090, the EUR/USD pair shows limited bullish potential with neutral-to-bearish technical indicators on the daily chart. The 20 SMA offers near-term support at 1.1070, while the 100 and 200 SMAs present resistance at 1.0850.
In the short term, the pair remains neutral-to-bullish on the 4-hour chart, supported by moving averages. However, weakening technical indicators suggest a possible downside correction.
Support Levels: 1.1065, 1.1020, 1.0975
Resistance Levels: 1.1115, 1.1150, 1.1185
Analysis: Despite mixed economic data, EUR/USD struggles to maintain upward momentum due to weak US employment figures. Traders should monitor upcoming data releases and Fed policy decisions for potential impact on currency movements.