Market Overview

EUR/USD Forecast: Near Weekly Highs, Bullish In The Short-Term

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EUR/USD Forecast: Near Weekly Highs, Bullish In The Short-Term

EUR/USD Current Price: 1.1097

  • Speculative interest discarded dismal EU data, kept selling the dollar.
  • The US economy is expected to have added 180K new jobs in November.
  • EUR/USD near weekly highs, bullish in the short-term.

The EUR/USD pair has posted a modest advance for a third consecutive day, although it continues trading in a well-limited intraday range around the 1.1100 figure. There were no fresh news coming from the US-China trade front, with the market cautiously optimistic about the matter. Data should have skewed the scale in the dollar’s favor, as European figures were mostly discouraging, while US numbers were upbeat. Nevertheless, the greenback remained unattractive for investors, that now believe the upcoming US employment report may bend Fed’s hand.

The US economy is expected to have added 180K new jobs in November after adding 128K in October. The unemployment rate is foreseen steady at 3.6%, while wages’ growth is also seen within familiar levels, up by 0.3% MoM and by 3.0% when compared to a year earlier. The market, however, is preparing itself for a miss, as data released ahead of the NFP suggest a weaker number, hence, the dollar remains under selling pressure.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair trades a few pips below this week’s high at 1.1115, and near a Fibonacci resistance at 1.1108, the 23.6% retracement of its October rally. The bullish case persists, as buyers remain aligned around the 38.2% retracement of the same rally at 1.1065. Meanwhile, the 4-hour chart shows that the pair is modestly advancing above all of its moving averages, while the 20 SMA is now above the 200 SMA. Technical indicators lack directional strength but remain within positive levels. All in one, the pair is set to extend its gains, and it would take an impressive NFP report to change this short-term trend.

Image Sourced from Pixabay

Posted-In: European UnionNews Eurozone Forex Global Federal Reserve Markets General

 

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