EURUSD Continues to be pressured ahead of US employment data.
EURUSD is again on the decline following a less assured retreat to about 1.0950 during the early European session. Selling pressure is applied to the main currency pair. As the market has become more pessimistic ahead of the US labor market report.
S&P 500 futures are quiet throughout the Asian session. Indicating that traders are being cautious in front of important economic data.
The US Dollar Index (DXY) has increased to around 102.60 due to expectations that the Federal Reserve will cut interest rates. (Fed) decreased in March. Market players are reevaluating their expectations for rate reductions in light of the US economy’s bright future.
Base effects cause the HICP numbers for the Eurozone to appear higher.
Investors are awaiting the preliminary December Harmonized Index of Consumer Prices (HICP) data. Which is scheduled for publication at 10:00 GMT. Because base effects will enable policymakers at the European Central Bank (ECB) to support higher interest rates for a longer length of time, the inflation data is perceived as higher.
EURUSD Technical Outlook
On a four-hour timeframe, the EURUSD pair trades in a Rising Channel chart pattern. Where market participants view each decline as a chance to sell. The asset is moving in the direction of the lower part of the previously indicated chart pattern. The 200-period Exponential Moving Average (EMA) has been approached by the significant correction, which exchanges at 1.0913.
The 14-day Relative Strength Index (RSI) has moved into the bearish 20.00–40.00 zone. Given the positive broader appeal and the fact that a lower RSI (14) would be regarded as oversold, a rebound move is very plausible.
If the asset corrects further to the lower part of the Rising Channel. Which is about 1.0878, then a new purchasing opportunity would present itself. This would push the asset toward its low on December 20 at 1.0930 and its high on January 4 at 1.0972.
Conversely, if the asset were to fall below its low of 1.0825 on November 17, downside would become evident. The asset will decline to its high on September 12 at 1.0770 and its low on December 8 at 1.0728 if it falls below the same level.
