EUR Still Pressurized Due to Extended Recovery of USD ahead of US NFP
The latest price chart for the EUR/USD pair shows that it is having a hard time and moving in the south direction. The euro is not able to hold its own against the USD for now.
USD’s Extended Recovery against the EUR
The USD is undergoing a significant rally and its value is experiencing an extended recovery against the EUR. The recovery of the USD however, is considered to be a risky situation for investors.
As the price of the USD is rising, there are high chances that it may move downwards after a certain period. But for now, it is overwhelming the EUR with its extended recovery.
USD to Hit 1.0200 Soon
At the time of writing, the USD is moving towards a strong recovery and so far, the EUR/USD pair is reaching 1.0200. It is expected that the overall value of the euro may take another hit due to the demise of the German economy.
German Economy Fears
It is expected that the German data may soon be shared, which may indicate uplifts in the inflation rates. This would greatly impact the overall economy in the European region.
For now, the investors are keeping a close eye on the data from Germany as it can be a very decisive factor in the value of the EUR. Germany has the fourth largest economy in the world.
If the German economy ends up taking a hit, then it will be another major factor pulling the value of the EUR.
Then there is the Nonfarm Payrolls data for the United States that is being eagerly awaited by the investors. It may also prove to be another factor that may push USD’s value higher compared to the EUR.
Downward movement of EUR
The price chart of the pair suggests that EUR/USD is set to move in the negative zone. It will move to the downside and move between a narrow range of 1.0243-1.0254.
For now, the pair has moved towards the correction level, which shows that it has settled at 1.0230 for now. For the time being, exhaustion is being recorded in terms of the positive momentum of the EUR.
DXY Looks Promising
It suggests that the pair may not visit and upside for some time. It was on Thursday when the DXY showed that the USD was at 105.70, which was the low side for the dollar.
The DXY is currently moving in the right direction for USD investors as the value of the greenback is rising. Fully employment levels are being maintained by the US economy, which is a positive factor going in favor of the USD.
If things keep going in favor of the USD, then the trading value of the EUR/USD pair may continue moving south.