EUR/USD Price Forecast: Needs to take out 1.1600 decisively for fresh upside

As the Euro (EUR) trades cautiously near its low of 1.1500 against the US Dollar (USD) on Tuesday, market participants await crucial US economic data releases to gauge interest rate prospects. The US Dollar Index remains steady around 100.00, while traders focus on the US Nonfarm Payrolls (NFP) report for July, due out on Friday.

The Fed's decision to suspend forward guidance on rates has intensified market sensitivity to employment figures. Later today, the US JOLTS Job Openings data for June will be disclosed at 14:00 GMT, with an anticipated 7.45 million new jobs, slightly lower than May's 7.594 million. Eurozone investors believe a September rate hike by the European Central Bank (ECB) is likely, with Deutsche Bank analysts estimating a 90% probability.

EUR/USD maintains a slight bullish outlook as it surpasses the 20-period exponential moving average (EMA) at 1.1451, indicating underlying demand after breaching this short-term trend reference. The Relative Strength Index (14) at 59.1 suggests sustained buying pressure remains constructive but not overextended. Immediate resistance for the pair is the downward-sloping trend-line break level at 1.1555, preceding the next target of 1.1600 for bulls.

Should it surpass this level, EUR/USD may surge towards May's high of 1.1686. Conversely, initial support lies at the 20-period EMA at 1.1451; a close below this floor would undermine the current positive sentiment and expose the pair to the July 28 high of 1.1353.