EUR/USD Steadies as Markets Brace for NFP, Eyes on Fed’s Rate Path
The EUR/USD currency pair maintains stability during the Asian trading session on Friday, momentarily pausing the previous night’s retracement from the proximal 1.0670-1.0675 barrier, corresponding to the week’s apex.
The pair is currently hovering around the 1.0625-1.0630 zone, showing negligible change for the day, as market participants eagerly anticipate the U.S. Non-Farm Payrolls (NFP) report to guide their subsequent strategic moves.
Technically, daily chart indicators have begun to exhibit a resurgence in positive momentum, bolstering the possibility of a significant upward trajectory, especially amid speculations that the Federal Reserve is approaching the conclusion of its interest rate elevation cycle.
Nonetheless, persistent falterings near the 50-day Simple Moving Average (SMA) suggest a degree of prudence before committing to bullish positions on the EUR/USD pair. Furthermore, the ascent from the year-to-date nadir around the 1.0445-1.0450 range noted in October, following an ascending channel pattern, hints at a bearish flag formation, especially when contrasted with the steep decline from the 17-month zenith reached in June.
Consequently, the 1.0665-1.0670 range may persist as a formidable immediate obstacle. Breaching this could propel the EUR/USD pair towards the 1.0700 milestone and challenge the upper boundary of the aforementioned channel, presently near the 1.0715 area. Persistently robust momentum beyond this point would invalidate the bearish scenario, setting the stage for further advances.
EUR/USD Technical Outlook
The pair could then intensify its positive trajectory towards the subsequent resistance vicinity around the 1.0765 mark, potentially aiming for the 1.0800 psychological level.
Conversely, a descent below the 1.0600 threshold could attract buying interest near the 1.0570 zone, adjacent to the ascending channel support. This is followed by a more than two-week trough around the 1.0520-1.0515 range, observed on Wednesday, and the critical 1.0500 mark. A decisive breach here could act as a catalyst for bearish participants.
The EUR/USD pair might then experience further depreciation below the 1.0450-1.0445 region, corresponding to the year’s lowest point, potentially gravitating towards the 1.0400 round figure.
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