The chart is certainly an intriguing one as the euro snapped a run of six straight days of losses against the dollar in trading yesterday. But the pair is now down 0.2% to 1.0780 with price caught in between its 100-day (red line) and 200-day (blue line) moving averages:
EUR/USD daily chart
The former is sitting at 1.0763 while the latter is at 1.0822 currently. So, that exemplifies a tighter range for the pair until there is a technical breach on either side. As such, something’s gotta give and traders will be looking for catalysts for such a move. And we might just get that via the US jobs report later.
As things stand, traders have priced in a rather aggressive amount of rate cuts for next year for both the Fed and ECB already. It will now come down to a question of if such sentiment is validated or invalidated. Given the circumstances, economic data releases are a way of reaffirming that. And they don’t come bigger than today, at least for the dollar side of the equation.