August 31, 2022 02:20 AM ET
By: AnalysisWatch
EUR/USD bulls are taking a breather around 1.0035 after touching up the day's high at 1.0046 as a cautious sentiment questions the initial optimism during Wednesday's European session.
However, the latest setback in the major currency pair may be related to concerns ahead of the preliminary Eurozone HICP results for August, which are expected to come in at 9.0% versus 8.9%.
Following that, the August ADP employment figures in the US, which are an early signal for Friday's non-farm payrolls (NFP) and are expected to come in at 200,000 vs. 128,000, will also be important in providing fresh impetus.
However, it is worth noting that the successful upside break of the 50-SMA, supported by a firmer RSI (14) and bullish signals from the MACD, has EUR/USD buyers hopeful.
Therefore, a convergence of the 100-SMA and an area encompassing several levels marked since late July, near 1.0100, seems to be a tough nut to crack for the bulls.
Even if the price rises above 1.0100, the 200-SMA hurdle around 1.0150 could act as an upside filter.
On the other hand, the 50-SMA at 0.9985 could limit the immediate downtrend of the EUR/USD.
After that, the weekly support line at 0.9935 and the round number of 0.9900 could regain the bears' attention.
Overall, the EUR/USD bulls are in control ahead of the crucial data.
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