With significant economic data imminent, the EURUSD has observed its sixth consecutive trading day in the green. The most recent US Nonfarm Payrolls (NFP) data and European Retail Sales could result in substantial market fluctuations. Following the US Independence Day holiday on Thursday, it is anticipated that the trading session on Friday will witness an increase in activity on US markets.
European Data Remains Positive For EURUSD
Compared to the previous month's decline of -0.2%, German factory orders experienced a 1.6% month-on-month decline in May, falling short of the anticipated 0.5% increase. Although European figures were weakened, the EUR/USD was supported by a general weakening of the US Dollar, which pushed it just above 1.0800.
The dissemination of Pan-European Retail Sales is scheduled for early Friday. Sales are anticipated to increase by 0.2% month-over-month in May, compared to the previous -0.5% decline. Moreover, the annualized sales are expected to increase by 0.1% year-over-year from the previous 0.0%.
Investors Await High-Impact US Releases
The number of Nonfarm Payrolls in the United States is anticipated to decrease to 190,000 in June, a decrease from the previous figure of 272,000. Markets will also monitor previous releases for substantial revisions, as the US unemployment rate is anticipated to remain at 4.0%.
Furthermore, the average hourly earnings in the United States are expected to experience a minor decline in June, decreasing from 4.1% to 3.9% on a year-over-year basis.
EURUSD Forecast Technical Analysis
In the daily chart of EURUSD, the ongoing price action is corrective from where a potential bullish breakout could initiate an impulsive trend.
In the most recent chart, a buying pressure is visible above the dynamic 100-day Simple Moving Average level, while the 20-day EMA remains below the current price.
Moreover, the buying pressure is supported by the bullish channel breakout, which is working as a minor bullish signal.
Based on this outlook, a long-term buying pressure might come after having a bullish break and a daily close above the 1.0852 resistance level. In that case, the upward pressure is likely to extend towards the 1.0849 resistance level.
The alternative approach is to look for a bearish opportunity, after having a massive selling pressure from the 1.0850 to 1.0800 zone. In that case, a daily close below the 20-day EMA could open the short opportunity, targeting the 1.0600 zone.
