EUR/USD Consolidates Near 1.0890 Ahead of US Employment Report and ECB Speech

Arslan Butt•Friday, July 7, 2023•1 min read

The EUR/USD currency pair remains stagnant as it reflects the cautious sentiment prevailing in the market ahead of the US employment report for June and a speech by European Central Bank (ECB) President Christine Lagarde. Despite the pair’s struggle to defend the short-term key support line following a recent U-turn, there are positive signs for potential buyers, including a successful rebound from the rising support line, bullish MACD signals, and a stronger RSI (14) line.

However, the immediate upside of the EUR/USD pair is limited by the 50-day simple moving average (SMA) around 1.0900. Furthermore, the bears face a resistance line sloping downwards from late June, with the latest obstacle near 1.0910.

In the event that Euro buyers manage to maintain control above 1.0910, there is a possibility of witnessing a new yearly high around 1.1015.

On the downside, a convergence of a descending support line from the past two weeks and the 200-day SMA highlights the crucial level of 1.0825-30 that the bears need to break in order to regain control of the EUR/USD pair.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.