- EUR/USD snaps the two-day losing streak, adding 0.20% for the day.
- The Relative Strength Index (RSI) stands below the 50.0 midline, indicating that further downside cannot be ruled out.
- The immediate resistance level is seen at 1.0935; the key support level is located at the 1.0870-1.0880 zone.
The EUR/USD pair finds some support near 1.0880 and then rebounds above the 1.0900 mark during the early European session on Friday. The recovery of the pair is bolstered by the softer US Dollar (USD) despite Eurozone inflation coming in worse than market expectations. The major currently trades around 1.0907, up 0.20% on the day.
The Harmonized Index of Consumer Prices (HICP), which measures inflation in the Eurozone, has raised expectations among investors that the European Central Bank (ECB) might start cutting its deposit rate as early as next April. Nonetheless, ECB President Christine Lagarde emphasized this week that now is not the time to declare victory since wage pressures remain high.
According to the four-hour chart, EUR/USD maintains a bullish outlook as the major pair holds above the key 100-hour Exponential Moving Averages (EMA) with an upward slope. However, the Relative Strength Index (RSI) stands below the 50.0 midline, indicating that further downside cannot be ruled out for the time being.
On the upside, the immediate resistance level for EUR/USD is seen near a low of November 28 at 1.0935. The next hurdle to watch is a high of November 21 at 1.0965. Any follow-through buying above the latter will see the rally to the key upside barrier at the 1.1015–1.1025 region, portraying the confluence of the Bollinger Band and a high of November 29.
On the flip side, the critical support level is located at the 1.0870–1.0880 zone. The mentioned level is the congestion of the 100-hour EMA and the lower limit of the Bollinger Band. The additional downside filter to watch is a low of November at 1.0852, followed by a low of November 17 at 1.0825, and finally a high of November 6 at 1.0755.
EUR/USD four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD sticks to half-yearly highs of 0.6740 ahead of US NFP
![AUD/USD sticks to half-yearly highs of 0.6740 ahead of US NFP](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/AUDUSD/macro-of-aussie-100-note-8615104_XtraSmall.jpg)
AUD/USD consolidates near a multi-month peak at 0.6740 in the Asian session on Friday as traders keenly await the the US NFP report. The Fed-RBA policy divergence continues to underpin the pair.
USD/JPY falls hard toward 160.50, US NFP data awaited
![USD/JPY falls hard toward 160.50, US NFP data awaited](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/USDJPY/five-thousand-japanese-yen-notes-on-many-dollars-background-30615054_XtraSmall.jpg)
USD/JPY is falling hard toward 160.50 in Asian trading on Friday, having reversed from near 161.40. The pair drops on renewed US Dollar weakness and Japanese verbal intervention, which rescues the Yen. The focus shifts to US jobs report.
Gold price steadily climbs back closer to two-week high, focus remains glued to US NFP
![Gold price steadily climbs back closer to two-week high, focus remains glued to US NFP](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stacked-gold-bars-13094022_XtraSmall.jpg)
Gold price extends its consolidative price move during the Asian session on Friday and remains well within the striking distance of the highest level since June 21 touched earlier this week. The recent softer US macro data reaffirmed market bets that the Federal Reserve will begin cutting rates in September.
Is the party over for meme coins?
![Is the party over for meme coins?](https://editorial.fxstreet.com/images/Resources/CryptoWorldSEO_XtraSmall.png)
According to Santiment's data on Thursday, meme coins have experienced steep declines in the past few weeks, following speculation that the crypto market has passed its euphoria phase.
US jobs report preview – Will Nonfarm Payrolls disappoint?
![US jobs report preview – Will Nonfarm Payrolls disappoint?](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/two-businesspeople-shaking-hands-gm470252334-62070868_XtraSmall.jpg)
Will the July Nonfarm Payrolls report disappoint, sending stocks and the US Dollar lower? Let's take a look at what the signal is from the other labor market indicators because forex fundamentals matter for trading.