Today's news may push EURUSD lower

04 August 2023 160
Today's news may push EURUSD lower

The EURUSD currency pair is moderately declining due to traders' optimism in anticipation of U.S. employment data after the publication of a number of strong economic indicators this week.

 

Thursday's data showed a slight increase in the number of jobless claims in the States last week. At the same time, the number of layoffs in July fell to an 11-month low.

 

Long-term U.S. bond rates rose to their highest level since November on Thursday after labor indicators and other economic data pointed to lower inflation.

 

Meanwhile, the European Central Bank (ECB) signaled last week that it may suspend monetary policy tightening at its next meeting in September due to falling inflation and slowing economic growth. However, Fabio Panetta, a board member of the European regulator, spoke on Thursday in favor of keeping ECB interest rates at current high levels in the long term.

 

At the moment, traders' attention is focused on the publication of U.S. non-farm payrolls data for July. According to experts' forecasts, the labor market remained stable last month. Any signs of its stability may serve as a basis for further tightening of monetary policy. It is expected that the number of employed workers should increase from 149,000 to 179,000. Confirmation of this forecast may support the U.S. currency. Statistics will be published today at 12:30 GMT.

 

EURUSD continues to move in an uptrend on the D1 timeframe. Another descending channel is forming within the H4 timeframe channel. The price is aiming towards the support of the higher timeframe.

 

The Relative Strength Index (standard values) confirms the current short-term downward direction of the pair's rate in convergence.

 

Today's strong news background may increase volatility in the market, so the current sales of the pair should be accompanied by an early distant level of loss taking.

 

Signal:

 

Short-term prospects for EURUSD suggest selling

The target is at the level of 1,0750.

Part of the profit should be taken near the level of 1,0840.

A stop-loss could be placed at the level of 1,1160.

 

The bearish trend is short-term, so trade volume should not exceed 2% of your balance.


This content is for informational purposes only and is not intended to be investing advice.

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