EUR/USD Daily Analysis: September 2, 2019
This week might start with slow trading given the US Labor day. Volatility will probably rise in the latter days of the week, especially with the upcoming US jobs data on Friday and Fed speech.
Also, the progress on the Sino-US trade war will still have an effect on the exchange rate. Jus in the previous week, Trump said that the two nations will proceed with the trade talks, which induced a shift in the markets. In turn, this resulted in a decline in the euro major pair.
The economic data in the eurozone has actually met expectations of analysts, except for the decrease in the manufacturing sector. Overall, reports from Italy, Germany, and the eurozone are declining in the market. Meanwhile, France showed growth in August but data will remain to be a concern for the euro economy.
The decline of the EUR/USD pair on Friday is important as it pushes the rate to a record low over a year. Also, the pair dropped lower than 1.1000 that have an impact on the pair. It seems that the pair proceeds with a decline with the next important support level at 1.0833.
It can be said that the trading rate is slightly oversold present levels. Sometimes, unexpected volatility drove the pair unexpectedly at the end of the month, which is the probable reason for the decline last week.
If the price proceeds with the recovery, sellers will probably touch on the level of 1.1100. HIgher than that is where the resistance is found at 1.1030, which was previously support.
In general, the euro major pair is moving sideways following a drastic drop on Friday. Moreover, volatility will likely be slow with the present US holiday but attempts for recovery will be blocked by sellers around 1.1000 then towards 1.1030.