EUR/USD Price Forecast: Next move hinges on US NFP data
The Euro (EUR) finds temporary support against the US Dollar (USD) on Friday after a four-day losing streak, in which it hits a fresh yearly low at 1.1215. In Asian trade, EUR/USD is up 0.1% to near 1.1253 due to a marginal correction in the US Dollar.
EUR/USD price forecast hinges on US Nonfarm Payrolls (NFP) data as the Euro finds temporary support against the US Dollar following a four-day losing streak, reaching a fresh yearly low of 1.1215. This support is buoyed by a marginal correction in the USD. The US Dollar faces caution as investors await the September NFP report, set to publish at 12:30 GMT.
The NFP report is anticipated to show 90K new jobs, less than the 162K reported in August, with the Unemployment Rate expected to remain steady at 4.1%. This data will heavily influence Federal Reserve interest rate expectations, with officials favoring additional rate hikes in the near term. Meanwhile, Euro investors anticipate preliminary Harmonized Index of Consumer Prices (HICP) data for September at 09:00 GMT, with a potential year-on-year acceleration to 3.6% from the August reading of 3.2%, potentially supporting further interest rate hikes by the European Central Bank (ECB).
On the EUR/USD chart, the currency pair trades at 1.1253, displaying a bearish near-term outlook as it hovers below the 20-day exponential moving average at 1.1423, acting as immediate resistance. The RSI reading of 19.8 suggests stretched downside momentum, but any recovery attempts may face selling pressure at this barrier. The June 24 low of 1.1325 serves as a key resistance level before the pair encounters the 20-day EMA dynamic barrier at 1.1423. Downside support could take the pair towards 1.1200, potentially exposing it to 1.1100.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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