The EURUSD currency pair maintains its upward momentum from Friday and continues to reach its highest level for the week above 1.0950.

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• EUR/USD sustains Friday’s rebound to weekly highs through 1.0950.

The pair currently trades last at 1.09640.

The previous day high was 1.0973 while the previous day low was 1.0867. The daily 38.2% Fib levels comes at 1.0933, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0908, expected to provide support.

EUR/USD is holding steady above 1.0950, sitting near eight-day highs of 1.0975 set on Friday. The pair is consolidating last week’s gains, in what seems to be a relatively quiet start to a big week ahead.

Investors digest Friday’s volatile trading activity, in response to the US labor market report, which fuelled further recovery in the EUR/USD pair from near the 1.0830 region. The main currency pair rose over a big figure on Friday after the US Dollar incurred heavy losses on disappointing US payrolls data. Non-farm payrolls for June came in at 209k versus a 225k estimate. Additionally, May and April NFPs saw a big downward revision, suggesting a cooldown in the job market.

The wage inflation data, represented by Average Hourly Earnings, was +0.4% in June against a +0.3% estimate and matched May’s +0.4% which was revised upward from +0.3%. Following the US jobs data release, investors began to believe the Fed may not be as hawkish as expected, sending EUR/USD back toward 1.1000 at the expense of the US Dollar.

Markets are now pricing in roughly 70% odds of a Fed rate hike pause in September after the expected 25 basis points (bps) rate hike by the US central bank this month.

Meanwhile, mixed commentary from the European Central Bank (ECB) officials over the weekend, appears to be limiting the further upside in the Euro (EUR) for the time being. ECB Governing Council member Francois Villeroy de Galhau said, “Eurozone rates will soon reach their high point, but it will be more of a high plateau than a peak.” ECB Governing Council member and Bank of Portugal Governor, Mario Centeno, said that he expects Eurozone “inflation under 3% by the end of 2023.”

Next of note for traders remains the Chinese inflation data, which could have a significant impact on risk sentiment and the US Dollar valuations, in turn, influencing the EUR/USD price action. Also, in focus remains the Eurozone Sentix Investor Confidence data for July due later this Monday, in the absence of top-tier US economic data. This week’s Germany’s ZEW survey and US Consumer Price Index (CPI) will be closely followed by EUR/USD traders.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0965 at the time of writing. Pair opened at 1.0967 and is trading with a change of -0.03 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.09, 50 SMA 1.0859, 100 SMA @ 1.0829 and 200 SMA @ 1.0621.

The previous day high was 1.0973 while the previous day low was 1.0867. The daily 38.2% Fib levels comes at 1.0933, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0908, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0898, 1.0829, 1.0792
• Pivot resistance is noted at 1.1004, 1.1042, 1.111

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