EURUSD remains stable at approximately 1.0950.
After spending the first three days of the week in the red, the EURUSD staged a minor recovery late Thursday. The pair is trading in a tight channel at about 1.0950 on Friday morning.
The US Dollar lost strength late Thursday as a result of mixed macroeconomic data releases and an improvement in risk sentiment. Allowing EURUSD to push higher. The Euro Stoxx 50 is up 0.5% early Friday. And US stock index futures are trading in the green, helping the pair keep its ground.
Nonfarm Payrolls data from the United States could influence the pair’s movement ahead of the weekend.
Nonfarm Payrolls (NFP) in the United States are Following a 209,000 increase in June, inflation is expected to rise by 200,000 in July. Annual wage inflation is predicted to fall to 4.2%, while the unemployment rate is expected to remain unchanged at 3.6%.
Following the July meeting, Federal Reserve Chairman Jerome Powell emphasized the Fed’s data-driven approach to monetary policy.
Currently, markets are pricing in a 30% chance that the Fed would raise its policy rate by 25 basis points before the end of the year. an positive NFP print of 250,000 or higher might feed into hawkish Fed predictions and support the USD. A weak print close to 150,000, on the other hand, could have the opposite effect on the USD’s valuation.
If the NFP comes close, According to market forecasts, investors will pay increased attention to wage inflation figures. An unexpected uptick in annual wage inflation may aid the USD’s resistance to the Euro.
EURUSD Technical Outlook
EURUSD remains above the upper limit of the descending regression channel that began in mid-July, currently at 1.0950, and the four-hour chart’s Relative Strength Index (RSI) indicator is approaching 50. These technical changes indicate a lack of seller interest but no building of recovery momentum.
A four-hour close below 1.0950 might attract more selling and pave the way for a longer decline approaching 1.0900 (psychological level, mid-point of the declining channel) and 1.0860 (lower limit of the descending channel).
If 1.0950 is If 1.1000 (psychological level, Fibonacci 61.8% retracement of the recent upswing) is confirmed as support, 1.1020 (200-period Simple Moving Average) and 1.1050 (Fibonacci 50% retracement) could be set as the next recovery targets before 1.1020 (200-period Simple Moving Average).
