EUR/US attempts to regain its positions after the US data

EUR/US attempts to regain its positions after the US data

Posted on August 7, 2017, 09:20 AM

EUR/USD currency pair reached 1.1800 and right to the opening of Europe trading it has stuck in this area.

According to the data on the employment outside the agricultural sector in the United States, on spot trades, consolidation of Euro recovery could be observed after its losses last Friday. It seems that the dollar bulls have taken a time out and they are now waiting for the reaction from the Euro traders, allowing them to take the next step.

In July in the United States, there were 209 thousand new jobs plus hourly wages were increased by 0.3 percent, and the unemployment rate fell to 4.3%. The reliable data on the labor market has strengthened investors’ confidence in the Fed rate hike in December. So here comes the difference in the Central banks’ monetary policies of the old world and the new one - a hawk in the USA and a pigeon in the Eurozone.

Now we need to await the data on consumer confidence Index in the U.S., which will further reveal future changes in the key interest rates by the monetary authorities of the United States and will shed light on the future dynamics of the U.S. dollar.

Technically it can be concluded that the pressure on the dollar is coming to an end and proceeds to the single European currency. In case of overcoming the low of July 31, 1.1722, it is possible to reach the low of July 28, 1.1670 and further 1.1620.

The opposite scenario development looks somewhat more limited, but move to strong resistance at around 1.1880 is also possible.

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