The EURUSD currency pair is forming a downtrend, as the dollar received support from the statistical data. U.S. economic indicators confirmed the cooling of the labor market, and the representatives of the Federal Reserve hinted at the easing of monetary policy next year.
Data released on Tuesday showed that the number of job openings in the U.S. fell to a more than 2–1.5-year low in October. This was the strongest sign that higher interest rates were dampening demand for workers. There were 1.34 vacancies for every unemployed person in October, the lowest since August 2021.
U.S. Treasury Secretary Janet Yellen expressed her views on the labor market. In her opinion, the forecasts of economists predicting high unemployment to curb inflation have proven wrong. Currently, there are no signs of weakness in the labor market, and the downward trend in consumer prices in the United States is strengthening.
On Friday, the employment report for November will be released. It will provide insight into the state of the U.S. economy ahead of next week's Fed meeting.
Meanwhile, October producer prices in the eurozone increased compared to September. Eurostat reported Tuesday that factory selling prices in the 20-country eurozone rose 0.2% month-on-month in October, but were down 9.4% from a year ago.
Producer prices are a preliminary indicator of the trend in consumer inflation. The European Central Bank aims to bring it down to the target level of 2.0%. In November, the figure fell for the third consecutive month to 2.4%.
The EURUSD pair quotes went out of the uptrend on the H4 timeframe.
In terms of wave analysis, the price is forming the second descending wave. Divergence of the RSI indicator (standard values) portends a change in the direction of EURUSD and the transition to the third upward wave.
Signal:
The short-term outlook for the EURUSD pair is to buy.
The target is at the level of 1.1015.
Part of the profit should be fixed near the level of 1.0880.
A Stop-loss should be placed near the level of 1.0685.
The bullish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.
This content is for informational purposes only and is not intended to be investing advice.
