EUR/USD Pulls Back to Trim Mid-Week Gains After the US NFPs

The EUR/USD currency pair on Friday pulled back to trim Thursday’s gains after finding strong resistance at 1.0240. The currency pair continues to trade within a relatively sideways channel formation amid a strong battle between the bulls and the bears.

The currency pair has now declined to trade below the 100-hour moving average line in the 60-min chart. As a result, the pair plummeted to trade closer to the oversold conditions of the 14-hour RSI.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair is trading at the back of a relatively busy period in the US market. On Friday, the US non-farm payrolls for July beat the expected job count of 250k, with a higher tally of 528k. On the other hand, the unemployment rate edged slightly lower to 3.5% down from 3.6% and better than the market forecast of 3.6%.

The average hourly wage for the month grew by 5.2% from the same month a year ago, beating the consensus estimate of 4.9%. The (MoM) growth rate of 0.5% was also higher than the expectation of 0.3%. Earlier in the week, the initial jobless claims for last week came in at 260k, slightly above the estimate of 259k, while the continuing claims for the preceding week missed 1.37 million with 1.416 million.

In the EU, retail sales for June missed both the (MoM) and (YoY) expectations of 0% and -1.7%, respectively with -1.2% and -3.7%.

EUR/USD Technical Analysis (the 60-min Chart)

Technically, the EUR/USD currency pair seems to be trading within a choppy sideways channel formation in the 60-min chart. This indicates a strong battle between the bulls and the bears.

Therefore, the bulls will be targeting short-term rebound profits at about 1.0205, or higher at 1.0236. On the other hand, the bears will be looking to extend the declines toward 1.0142 or lower to 1.0110.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be looking to extend the current downward movement toward 1.0004 or lower to 0.9815. On the other hand, the bulls will be targeting long-term profits at about 1.0345, or higher at 1.0534.

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