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Euro Gains Traction on Weak US Jobs Data

The Euro (EUR) strengthened against the US Dollar (USD) on Friday, reaching a three-week high near 1.0800.

  • US Nonfarm Payrolls Disappoint: The US Bureau of Labor Statistics reported weaker-than-expected job growth and slower wage growth in April.
  • Fed Rate Cut Expectations Rise: This data fueled speculation that the Federal Reserve might cut interest rates sooner than anticipated, weakening the US Dollar.
  • US Services PMI Falls Short: The US ISM Services PMI data for April also missed expectations, indicating potential contraction in the service sector.

Technical Analysis: EUR/USD Faces Resistance

  • The EUR/USD pair trades near the 1.0800 resistance level.
  • A Symmetrical Triangle pattern on the daily chart suggests potential breakout opportunities in either direction.
  • The RSI is inconclusive, indicating indecision among investors.