The primary currency pair is consolidating around 1.0965.
A lot has happened since the beginning of the year. First, the US reported on the employment market performance in December. The data exceeded expectations and pushed investors far back in their forecasts regarding the Fed's future actions.
NFP jobs increased by 216 thousand against expectations of 170 thousand. The preceding November rise of 199 thousand was revised to 173 thousand. Average hourly earnings continued to grow, reaching 4.1% y/y from the previous 4.0%. Meanwhile, the unemployment rate remained steady at 3.7%.
Despite initial concerns among investors about challenges in the employment sector due to high interest rates, the report indicated otherwise.
EUR/USD technical analysis
On the H4 EUR/USD chart, the quotes have completed a declining wave to 1.0882 and a correction to 1.0996. A consolidation range is forming around 1.0948 today. If the range breaks downwards, the trend could extend to 1.0755. Technically, this scenario is confirmed by the MACD: its signal line is below the zero mark, while the histogram is recovering from the lows, moving sharply upwards towards the zero level.
On the H1 EUR/USD chart, a consolidation range continues to develop around 1.0948 without any apparent trend. A correction link to 1.1010 is expected. Once the correction is complete, a new declining wave to 1.0895 may begin. If this level breaks downwards, the potential for a decline wave to 1.0755 might emerge. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is near 20, indicating a readiness to continue rising towards 80.
By RoboForex Analytical Department
Disclaimer
Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
