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In case you missed this news, the EUR/USD pair looks like it is poised near a technical support level ahead of Uncle Sam’s employment updates.
EUR/USD for 4 hours Chart by TradingView
The euro is not having a good month so far, as increasing calls for an interest rate cut by the European Central Bank (ECB) in October and increasing tensions in the Middle East are limiting demand for the single currency.
On the other hand, the US dollar is gaining some ground from its counterparts as safe haven demand and easing calls for deep interest rate cuts from the Fed have brought some bulls back into the dollar arena.
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven’t done your homework on the USD and EUR yet, it’s time to check the economic calendar and stay up to date with daily essential news!
The EUR/USD pair, which turned lower from the 1.1200 area in late September, fell to the 1.1050 levels which was a resistance area in August and a support area in September.
Apart from that, the 1.1000 – 1.1050 area is lined up with the bottom of the range pattern and the S2 pivot point (1.1021) in the 4-hour time frame.
Are we looking at a bounce in the making?
today US NFP report It may provide a stimulus. There are rumors that Uncle Sam will see weaker employment numbers in September, which could raise hopes for more massive interest rate cuts from the Fed and weaken the dollar.
Green candlesticks and sustained trading above 1.1050 sets up EUR/USD for a potential jump to the 1.1100 medium range area if not the 1.1200 range resistance area.
If today’s events lead to a net bullish environment for the USD, we could see EUR/USD trading below its support range. Watch for continued trading below 1.1000, which may attract USD buyers and drag EUR/USD to potential inflection points like 1.0900 in the next few days.
Good luck and good trading this setup!