EUR/USD Price Analysis: Upbeat Job Openings Weigh on Euro

• Data indicated an unexpected increase in US job openings in August.

• Payroll data on Friday will clarify the strength of the US labor market.

• The euro experienced a 3% decline against the dollar in the third quarter.

The Greenback maintained strength following positive data released Tuesday, leading to a bearish EUR/USD price analysis for Wednesday’s session. Notably, data indicated an unexpected increase in US job openings in August, particularly in the professional and business services sector.

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Rodrigo Catril, senior FX strategist at National Australia Bank, noted that this development rattled the markets. Moreover, it supported the Federal Reserve’s perspective of keeping interest rates higher for an extended period.

The surge in job openings suggests that the US labor market is not deteriorating as rapidly as previous data had implied. However, some aspects of the report do not necessarily indicate a robust labor market. 

Job openings increased by 690,000 to 9.610 million at the end of August, marking the highest level in just over two years. 

Looking ahead, Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina, mentioned that the upcoming payroll data on Friday will provide further clarity regarding the labor market’s strength. A stronger-than-expected report could be concerning for the central bank.

Meanwhile, the euro, trading at its lowest levels this year, near $1.05, experienced a 3% decline against the dollar in the third quarter. This decline sets the stage for a third consecutive year of losses. The main reason for this decline is the US dollar’s overall strength amid the US economy’s resilience.

EUR/USD key events today

Investors will receive several crucial reports from the US, including:

• The ADP nonfarm employment change.
• The S&P Global services PMI.
• The ISM non-manufacturing prices.
• The ISM non-manufacturing PMI.

EUR/USD technical price analysis: Downtrend meets solid support.

On the charts, the EUR/USD price has declined to the 1.0450 support level, where the price has paused. The bias is bearish as bears made a lower low when they broke below the 1.0500 support level. However, the downtrend has encountered a strong support level that could lead to a deep pullback or reverse the trend. 

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Moreover, bears have weakened at the 1.0500 key support. This weakness is seen in the RSI, which has made a bullish divergence. Therefore, bears would need to regain momentum to break below 1.0500. Otherwise, bulls might return to challenge the 30-SMA resistance.

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• Source: https://www.forexcrunch.com/eur-usd-price-analysis-upbeat-job-openings-weigh-on-euro/