The couple exceeded Friday, going up to 1,1657, promoted by the expectations of a more teaching position of the growing concern for the economic impact of the new US tariffs.
Recent data revealed that they exceeded the forecasts this week, which indicates even more a softening labor market after the mediocre media last week.
In the political front, the attention remains fixed on potential changes within the Fed. The president of the United States, Donald Trump, nominated Stephen Miran, head of the Council of Economic Advisors, to replace Adriana Kugler in the Board of Governors of the Fed. Meanwhile, the reports suggest that Christopher Waller is emerging as a leading candidate for the chair of the fed reinforced market expectations of a reduction of imminent rates already in September.
In addition to the problems, the new retaliation tariffs of the United States, ranging from 10% to 41%, entered into force at midnight on Thursday. This has fueled the fears of the winds against economic, damping further the feeling towards the green back.
Technical analysis: EUR/USD
Figure H4:
The EUR/USD saw a corrective movement at 1,1698, followed by consolidation near the top of this correction. A break below 1,1611 could trigger a wave down to 1,1520, with potential for greater decreases to 1,1343. The MACD indicator supports this bearish scenario: its signal line remains above zero, but has left the histogram area, which suggests a setback towards the lowest levels.
Figure H1:
The couple formed an impulse down at 1,1611, followed by a rebound at 1,1679. The current consolidation phase is established for a descending break, potentially starting a fifth wave of decrease towards 1,1520. A brief reestima of 1,1611 (from below) can continue before another fall to 1,1444, with an eventual objective of 1,1343. The stochastic oscillator corroborates this view, with its signal line below 50 and tending down around 20.
Conclusion
The EUR/USD remains under ascending pressure amid speculation about the Fed and concerns about tariffs, but the technical indicators suggest that a short -term bearish correction is likely.
By analytical department of Roboforex
Discharge of responsibility: Any forecast contained in this document is based on the author's particular opinion. This analysis may not be treated as commercial advice. Roboforex has no responsibility for commercial results based on commercial recommendations and reviews contained in this document.
