EURUSD trades corrective while a minor upside recovery is visible after the downbeat US employment data. However, the sideways market within a bearish trend could be a minor short opportunity for this pair.
Eurozone PMIs Pushed A Pressure On Euro
The HCOB Eurozone Composite PMI declined further below the threshold of 50.0 in November, which indicates a decline in output from the private sector.
The most PMI reading for November is 47.6, which represents a marginal improvement over the previous reading of 47.1. Meanwhile, the HCOB Services PMI rose from an earlier reading of 48.2 to 48.7.
Prominent Eurozone economies, such as France, Germany, and Italy, experienced a reduction in commercial operations, which acted as a bearish factor for the EUR/USD pair.
Ahead of time, the market will observe October retail sales figures for the Eurozone. Annual projections indicate a decline of 1.1%, whereas monthly projections indicate an increase of 0.2%.
US Private Payrolls Increased By 103,000 ADP Says
In the US, the number of new payrolls increased by 103,000 in November, which is below the market's anticipation of 130,000. Furthermore, the reading for October was adjusted downwards from 113,000 as originally projected to 106,000.
These numbers confirm the impact of restrictive interest rates on the labor market. If this assessment is confirmed by the Nonfarm Payrolls report on Friday, it could contribute to conjecture that the Federal Reserve might commence increasing interest rates in the initial quarter of 2024.
However, the general trajectory remains stagnant as the pair sustains the downside momentum below the 1.0800 threshold.
EURUSD Technical Analysis
In the daily chart of EURUSD, the overall market momentum is bearish as the dynamic 20 EMA acts as a resistance. Moreover, multiple daily candles are present below the 1.0847 level, which could work as a bearish continuation opportunity.
Investors should closely monitor how the week closes as the high impact of Non-farm payroll could work as a confluence to the technical pattern. As of now, a minor upward correction and a bearish rejection from the dynamic 20 EMA could be a short opportunity targeting the 1.0665 level.
On the other hand, an immediate bullish recovery with a daily candle above the 1.0850 level could extend the gain toward the 1.1000 threshold.
