The currency pair is steadily below 1.1934 and has a tendency to resume the uptrend after tomorrow's US Non-Farm Employment Change data. It is to mention that US ADP Non-Farm Employment Change data was very weak as only 167K new jobs were added against 1200K, forecasted by the analysts.
According to the experts' predictions, the US Non-Farm Employment indicator is going to print 1550K new jobs for the reported period. The previous data was 4800K.
EUR/USD Forecast for the End of the Week
The currency pair is moving along the ascending trendline on the Daily chart and is currently close to two-years highs.
EUR/USD is supported by the weak US Labor market data, released on Wednesday. Additionally, DXY suffers from the weak US GDP data, released last week. Advanced US GDP printed -32.9%, which was above economists' expectations.
Probable Scenarios of EUR/USD for the End of the Week
We expect the following scenarios for the currency pair:
- US Non-Farm Data is worse than it was predicted. DXY will develop the downtrend as the FOMC will definitely stick to its dovish rhetoric. EUR/USD is likely to break out 1.1943 and move higher targeting 1.2103.
- US Non-Farm Data is close to analysts' expectations. DXY will stop plunging and take a break. EUR/USD is likely to test 1.1943, but chances for a breakout are low.
- US Non-Farm Employment data beat expectations. DXY is likely to take a break and move even higher. In this case, EUR/USD is going to correct targeting the closest support area at 1.1719.