EUR/USD Daily Price Forecast – EUR/USD Opens Bearish on Firm USD Supported by Employment Data

The EUR/USD pair dropped further during Friday’s US session on the back of a stronger US dollar. It printed a fresh 2-day low at 1.1549 and bounced modestly to the upside. Near the end of the session was hovering around 1.1560, almost 90 pips below day’s highs. A stronger US dollar, particularly after the release of US employment data, pushed the pair to the downside. The NFP headline was slightly above expectations but the positive surprise came from acceleration in wage growth. It sent US yields to the upside adding more strength to the greenback. In immediate future, for EUR/USD, the path of least resistance is to the downside. The pair opened on bearish note for the week and has taken to steady downtrend movement. In early Asian market hours, the pair clocked a new intra-day low of 1.15395 and is currently trading at 1.1544 down by 0.07% on the day.

Trade War Woes Are Major Contributors To Global Currency Market Momentum

US President Trump said that, on top of the already planned tariffs on $200B on Chinese goods, he is “ready to go” on tariffs for another $267B on Chinese goods. Trump also said late Thursday that he will make Japan “pay,” opening another battlefront in his trade war. The announcement of effective applying tariffs on China has been left in suspense but it can come anytime during the upcoming days. President Trump has opened trade war against all major allies of USA and the proceedings of trade war is affecting global currency market as no major global economy has been left out of Trump’s trade related threats.

The EU and the US have little to offer in macroeconomic terms this Monday, with the only relevant figure scheduled being EU Sentix Investor Confidence Index for September. On a weekly basis, the euro is about to post a modest loss but it signals weakness ahead. Technical indicators in the daily chart present strong downward slopes, having entered negative territory, all of which supports additional declines, to be confirmed on a break below 1.1530, the weekly low. In the shorter term, and according to the 4 hours chart, the bearish potential is even stronger, as the price is currently developing below all of its moving averages for the first time since mid-August, while technical indicators maintain strong bearish slopes well into negative territory.