EUR/USD Analysis: Will US Employment Data Drive the Pair’s Next Move Below 1.1100?
EUR/USD is currently trading slightly below 1.1100 after a positive close on Wednesday. The upcoming US employment-related data releases could be the catalyst for the next significant movement in the pair. Technical analysis indicates that sellers are currently waiting on the sidelines, suggesting a potential bullish bias.
Euro PRICE This week
The table below displays the percentage change of the Euro (EUR) against major currencies this week. The Euro showed strength against the New Zealand Dollar.
USD Under Pressure After Job Openings Data
The USD faced selling pressure following the release of data by the US Bureau of Labor Statistics, showing a decrease in job openings in July. The upcoming ADP Employment Change and Initial Jobless Claims data will be crucial in shaping market sentiment towards the USD.
Impact on EUR/USD
Market expectations for a rise in private sector payrolls in August could influence the USD’s performance. A strong reading may boost the USD and limit gains for EUR/USD, while a disappointing figure could lead to a USD selloff.
Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart suggests bullish momentum for EUR/USD. Immediate resistance is at 1.1100, with support at 1.1040 and 1.1000.
Euro FAQs
- The Euro is the currency for 20 EU countries and is the second most traded currency globally.
- The ECB in Frankfurt manages monetary policy for the Eurozone.
- Eurozone inflation data and economic indicators can impact the Euro’s value.
- Trade Balance data is crucial for the Euro’s strength.
In conclusion, the upcoming US employment data releases will likely drive the direction of EUR/USD below the key level of 1.1100. Traders should closely monitor the data and technical levels to capitalize on potential trading opportunities.