EUR/USD Navigates at $1.085 Amid US Jobs Surge and ECB Rate Cut Prospects

While positive industrial growth in Germany for February suggested potential upward momentum, the EUR/USD pair continued to face downward pressure, trading near 1.0830. This decline was largely driven by the strength of the US Dollar (USD) and anticipation of an interest rate reduction by the European Central Bank (ECB), which dampened the Euro’s appeal.

Nevertheless, the robust German industrial data helped prevent more significant losses for the EUR/USD pair. In the United States, the release of strong employment figures, including a notable increase of 303,000 jobs in March’s Nonfarm Payrolls (NFP) report, has reinforced the USD’s strength.

This surge in job growth has reduced market speculation about a potential rate cut by the Federal Reserve, contributing to the USD’s bullish trajectory and applying downward pressure on the EUR/USD pair.

Despite a positive global market sentiment, buoyed by reduced geopolitical risks and better economic forecasts, the Eurozone’s ongoing economic concerns and the likelihood of ECB rate cuts have kept the EUR/USD pair subdued.

This scenario underscores the complex interplay of regional economic indicators and monetary policy expectations affecting the currency pair. Moreover, despite a 2.1% monthly increase in Germany’s industrial production in February, the EUR/USD did not gain much positive momentum, remaining bearish at the 1.0830 level.

This performance reflects the broader apprehensions about the Eurozone’s economic health and the impact of anticipated ECB monetary policies.

EUR/USD Price Forecast

On April 8, the EUR/USD currency pair modestly appreciated to $1.08525, marking a 0.14% increase. The pivotal threshold stands at $1.0824, with the pair displaying a bullish outlook above this juncture.

Resistance levels are identified at $1.0879, $1.0917, and $1.0963, while support converges at $1.0793, $1.0765, and $1.0726. The Relative Strength Index (RSI) reads at 59, suggesting moderate bullish momentum.

The 50-Day Exponential Moving Average (EMA) at $1.0819 further corroborates this trend. However, should the pair descend below $1.0824, it may precipitate a notable downward trajectory, underscoring a critical juncture for future price movements.