Fundamental Analysis

• U.S. job openings have decreased, reaching the lowest level since 2021.
• Concerns are growing over a potential deterioration in U.S. employment data, raising the risk of further USD depreciation.
• Nippon Steel’s acquisition plan for U.S. Steel faces difficulties as the President signals opposition.

EURUSD technical analysis

Analyzing the daily chart of EURUSD. The 28-day moving average is being closely watched. Yesterday’s rise formed an engulfing candle, and EURUSD is now above the 28-day moving average. It also seems to have recovered 23.6%. The RSI bounced at 50, suggesting a potential for another upward move.

Today’s focus will be on the U.S. ADP Employment Report. With U.S. job openings declining, the number of employees is expected to drop as well. In such a scenario, the risk of USD depreciation may be heightened. EURUSD may form a support level, leading to increased buying pressure for the Euro.

The forecast suggests that EURUSD might attempt to break through the 1.10 USD round number once again.

Day trading strategy (1 hour)

Analyzing the 1-hour chart of EURUSD. If USD weakness intensifies, EURUSD may rise. The basic strategy would be to look for buying opportunities on pullbacks. With RSI at 59, there is ample room for upward movement. In the 1-hour chart, buying near the 28 MA and targeting a sell near the 1.10 USD level would be a short-term trade focus.

If the U.S. ADP Employment Report results in USD weakness, EURUSD could surge as high as 1.12 USD. Positions should be cleared before the New York session, and after monitoring the market following the 21:15 ADP report, another buy position could be considered.

Support/Resistance lines

Key support and resistance lines to consider moving forward are as follows:

1.10 USD – Round Number

Market Sentiment

EURUSD – Sell: 63% / Buy: 37%

Today’s important economic indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.