The EURUSD currency pair is experiencing a slight increase of 0.19%, reaching a trading value of 1.0792, amidst the closure of US markets in observance of Labor Day. Despite remarks from ECB President Lagarde, the market lacks significant movement.

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• EUR/USD pair gains a modest 0.19% to trade at 1.0792, as US markets remain closed for Labor Day and ECB President Lagarde’s comments fail to stir volatility.

The pair currently trades last at 1.07976.

The previous day high was 1.0882 while the previous day low was 1.0772. The daily 38.2% Fib levels comes at 1.0814, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.084, expected to provide resistance.

A quiet session at the beginning of the week saw the Euro (EUR) gaining 0.19% versus the US Dollar (USD), as the US cash markets were closed on a Labor Day holiday. European Central Bank (ECB) officials failed to boost significantly the EUR, as the EUR/USD pair trades at 1.0792, almost flat as Tuesday’s Asian session begins.

During the European session, ECB’s President Christine Lagarde said that decisive action in high inflationary scenarios was “crucial.” Even though she spoke about inflation in a seminar in London, she failed to trigger volatility in the EUR/USD, as Lagarde was muted in talking about the ECB’s current monetary policy.

In the meantime, the additional stimulus the Chinese Government provides on its property markets boosts the economy and improves investors’ mood.

Last week’s US employment data was mixed as the economy added 187K jobs, above estimates and July’s data. Nonetheless, an uptick in the Unemployment Rate, from 3.5% to 3.8% YoY, kept most currency pairs within familiar levels, though spurred a reaction on the US bond market.

Investors slashed their bets of higher interest rates in the United States (US), which is also bad news for the USD. The odds for September’s meeting stay at around 93%, as shown by the CME FedWatch Tool, while the chances for November diminished further. Additionally, the first-rate reduction is projected for May 1, with traders anticipating rate cut odds around 5.14%, 19 basis points lower than the current effective Federal Funds Rate (FFR) of 5.33%.

Other data, depicted by the Institute for Supply Management (ISM), reported that US business activity, as indicated by the manufacturing PMI, scored 47.6, exceeding analysts’ estimates of 47.0 and the previous reading of 46.4.

The Eurozone (EU) economic docket will feature S&P Global Services and Composite PMIs and the Produce Price Index (PIP) by Eurostat. On the US front, the agenda will review Factory Orders.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0795 at the time of writing. Pair opened at 1.0776 and is trading with a change of 0.18 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0888, 50 SMA 1.0968, 100 SMA @ 1.0922 and 200 SMA @ 1.0816.

The previous day high was 1.0882 while the previous day low was 1.0772. The daily 38.2% Fib levels comes at 1.0814, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.084, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0738, 1.07, 1.0629
• Pivot resistance is noted at 1.0848, 1.092, 1.0958

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