EUR/USD Slips as USD Strengthens on Labor, Retail Data.
EUR/USD eases as the US Dollar strengthens on mixed labor figures and disappointing Eurozone Retail Sales.
FUNDAMENTAL OVERVIEW:
The Euro (EUR) came under renewed pressure against the US Dollar (USD) on Thursday, with EUR/USD giving back part of Wednesday’s gains and slipping toward 1.1645 as the American session began. The pullback followed renewed Dollar strength fuelled by mixed U.S. labor data and weaker Eurozone Retail Sales.
The ADP report showed U.S. private payrolls rising by just 54,000 in August, well below forecasts of 65,000 and sharply lower than July’s revised 106,000, signaling softer hiring momentum. Weekly Initial Jobless Claims also rose slightly to 237,000 from 229,000, hinting at increased layoffs. On the other hand, Q2 Nonfarm Productivity was revised higher to 3.3% from 2.4%, while Unit Labor Costs slowed to 1.0% versus 1.6% expected, suggesting easing wage pressures.
The U.S. Dollar Index (DXY) climbed back to around 98.30, retracing part of Wednesday’s decline but still confined to the narrow range seen since early August. Investors now turn their focus to Friday’s Nonfarm Payrolls (NFP) release for stronger cues on the Fed’s policy direction and the next potential move in EUR/USD.
EUR/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
EUR/USD is trading within an up channel.
EUR/USD is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Neutral Zone, while the Stochastic oscillator suggests Negative trend.
Immediate Resistance level: 113543
Immediate support level: 105717
HOW TO TRADE EUR/USD
EUR/USD initially climbed higher but faced rejection, triggering a drop into the support zone. While the pair briefly rebounded from this level, the recovery lacked strength, and momentum soon faded, leading to consolidation. Currently, EUR/USD is hovering near support, and a breakdown could open the door to further declines.
