The EUR/USD pair is witnessing a decline, gravitating towards the 1.0820 mark as the US Dollar gains strength. The uptick in the Dollar is driven by Tuesday’s JOLTS report which indicated a robust US labor market with 9.02 million job openings in December, casting doubts on an imminent Federal Reserve rate cut.

The resilience of the US labor market, coupled with global uncertainties due to Middle Eastern tensions and China’s economic challenges, bolsters the Dollar’s appeal. Consequently, this is placing the EUR/USD under bearish pressure as the Dollar approaches its monthly high.

Mixed Signals Ahead of FOMC Decision

However, the pullback in US Treasury yields could curb the Dollar’s advance, as market participants adopt a cautious stance before the forthcoming FOMC policy announcement. Simultaneously, speculation about the ECB’s rate cut timeline offers some support to the Euro, potentially tempering the pair’s downtrend.

Data Watch: German and French CPI in Focus

The day’s agenda is packed with key economic data releases, including German Import Prices and Retail Sales, the French Prelim CPI, and the German Unemployment Change. These figures could influence the EUR/USD trajectory just as much as the pending US data on employment change, employment costs, and the crucial FOMC rate decision and press conference. Market players are bracing for these announcements to dictate short-term currency movements.

EUR/USD Price Outlook: Technical Outlook

The EUR/USD pair is facing a downward pressure in today’s session, currently trading at $1.08201, which is a slight decrease from the previous close. The pair is operating below the pivot point marked by the green line at $1.08475, which could signify a potential bearish trend in the market.

Immediate resistance levels are positioned at $1.08645, $1.08822, and $1.09228, with each level serving as a barrier to any upward price movements. Support for the pair is found at $1.07970, followed by lower supports at $1.07672 and $1.07340.

The Relative Strength Index (RSI) is at 42, indicating a lack of strong momentum in either direction. At the same time, the pair remains below the 50-day Exponential Moving Average (EMA) at $1.08645, further reinforcing the bearish outlook.

The EUR/USD has recently exhibited a bearish engulfing pattern below the pivot point, a chart formation that often suggests a continuation of a downward trend.