EUR/USD Price Forecast: On verge of downward-trendline breakout

The Euro (EUR) is currently trading at around 1.1550 against the US Dollar (USD), with the pair edging down as the USD holds onto its early recovery. Analysts at Rabobank suggest that the US labor market data, including the weaker-than-expected Nonfarm Payrolls report, has weakened the case for further Federal Reserve tightening.

This evolving backdrop could potentially support the Euro, as it may strengthen the argument for a dovish Fed stance. Meanwhile, the US Dollar will be closely watching the July Consumer Price Index (CPI) data for potential market-moving signals.

Brief written by urgent.news from FXStreet's own syndicated text. Machine-written — it may contain errors, so check the original before relying on it.