Market Analysis

EUR/USD remains close to the key level of 1.0800 during Friday's European session. The currency pair is anticipated to remain largely stable as investors await the release of the US Nonfarm Payrolls (NFP) data for July, scheduled for 12:30 GMT.

Economists project that 175,000 new jobs were created in July, down from the previous addition of 206,000. The Unemployment Rate is expected to hold steady at 4.1%.

Attention will also be on the Average Hourly Earnings data, a critical indicator of wage growth that impacts consumer spending and inflation. The annual wage growth is forecasted to decelerate to 3.7% from 3.9% previously, with a monthly increase of 0.3%.

Ahead of the NFP report, the US Dollar (USD) shows muted performance. Recent weak US economic data suggests a potential slowdown, which could prompt the Federal Reserve (Fed) to consider reducing interest rates in September. The US Dollar Index (DXY), which measures the Greenback against six major currencies, has fallen to around 104.20.

On Thursday, the US ISM Manufacturing Purchasing Managers Index (PMI) for July revealed an unexpected contraction in factory activity to 46.8, worse than the anticipated 48.8 and June's reading of 48.5. Additionally, Initial Jobless Claims for the week ending July 26 reached their highest level in 11 months, with 249,000 new claims compared to estimates of 236,000 and the previous figure of 235,000.

Technical Analysis: EUR/USD in a Symmetrical Triangle Pattern

EUR/USD is trading within a Symmetrical Triangle pattern on the daily chart, indicating a period of low volatility. This chart pattern suggests that significant price movements are likely to be limited until a clear breakout or breakdown occurs.

The currency pair encounters resistance near the 20-day Exponential Moving Average (EMA) around 1.0835, hinting at a bearish short-term trend.

The 14-day Relative Strength Index (RSI) remains in the 40.00-60.00 range, reflecting a state of indecision among traders.

Paraphrasing text from "Reuters" all rights reserved by the original author.