EUR/USD Current price: 1.1058
- US private job creation rose by more than anticipated in September, according to ADP.
- The US Dollar benefits from a risk-averse environment amid Middle-East tensions.
- EUR/USD gains bearish traction in the near term, aims to test the 1.1000 mark.
The EUR/USD pair recovered from a weekly low of 1.1045 posted on Tuesday, with market players maintaining a cautious stance amid United States (US) macroeconomic data. The focus this week is on US employment figures, with several related figures scheduled throughout the week ahead of the Nonfarm Payrolls report to be out on Friday.
The country released the JOLTS Job Openings report on Tuesday, which showed job openings unexpectedly jumped by 329K from an upward revised 7.711 million in July to 8.040 million in August, providing near-term support to the US Dollar. Additionally, the US just published the ADP survey, which showed the private sector added 143K in September, better than the 120K anticipated. The August reading was upwardly revised from 99K to 103K.
Earlier in the day, the Eurozone reported that the August Unemployment Rate held steady at 6.4%, as expected.
Meanwhile, the USD benefited from a risk-averse environment amid geopolitical tensions in the Middle East. Cross-attacks between Israel and Lebanon escalated over the weekend and continue to affect financial markets. Oil prices jumped, pushing investors away from high-yielding assets and favoring USD gains in the near term.
EUR/USD short-term technical outlook
From a technical point of view, the EUR/USD pair is bearish, trading at the lower end of Tuesday’s range. The daily chart shows the pair trades below a flat 20 Simple Moving Average (SMA), currently providing dynamic resistance in the 1.1100 price zone. The 100 and 200 SMAs, in the meantime, have lost their upward strength but hold far below the current. Finally, technical indicators maintain their bearish slopes, gaining downward traction below their midlines, which is usually a sign of additional losses ahead.
In the near term, according to the 4-hour chart, the risk skews to the downside. A firmly bearish 20 SMA is coming close to cross directionless 100 and 200 SMAs to the downside, a strong selling signal. Even further, technical indicators grind lower after a consolidative stage within negative levels, anticipating another leg south without confirming it just yet.
Support levels: 1.1040 1.1000 1.0960
Resistance levels: 1.1110 1.1150 1.1200
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