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  • Fed’s Powell is not forecasting a recession in the United States (US), helping EUR/USD to inch lower.  
  • The level to beat for bears is the 1.0981 support level.  


EUR/USD daily chart

On the daily time-frame, the common currency is trading in a bear trend below the main daily simple moving averages (DSMAs). This Friday, the US Non-farm Payrolls (NFP) in the United States (US) came in below forecast with only 130K jobs added in August vs. 158K expected. However, the wages, the Average Hourly Earnings beat expectations with 3.2% vs. 3.1% expected.
Earlier, the FOMC’s Chairman, Jerome Powell said he was not forecasting a recession in the US. His upbeat comments triggered some modest uptick on the USD, translating in weakness on the EUR/USD currency pair.

EUR/USD four-hour chart

EUR/USD is consolidating the recent recovery stemming from the 2019 low. The Fiber is trading below the downward sloping 100 and 200 SMAs suggesting a bearish bias in the medium term. Sellers need to overcome 1.1009 key support if they want to drive the market towards 1.0981 and 1.0063 support levels, according to the Technical Confluences Indicator.

EUR/USD 30-minute chart

The Euro is trading just below the 1.1038 resistance level and the 50/100 SMAs, suggesting a consolidation down in the near term. Buyers would need to regain the 1.1073 resistance level to generate upside interest.

Additional key levels