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Euro stuck in sideways trend near 55-day SMA

The EURUSD pair closed slightly in the red on Tuesday, August 3, by the end of the day, skipping 0.05% to 1.1864. The euro bulls saw their profits erased during the North American trading session. The price action dropped to 1.1854 without breaking out of Friday's range of 1.1852–1.1909. The markets now await Friday's US jobs report for July.

Today’s macro agenda (GMT 3)

  • From 10:50 to 11:30 services PMIs are due out in France, Germany, the Eurozone, and the UK.
  • 12:00 Eurozone: retails sales (June)
  • 15:15 US: ADP employment change (July)
  • 15:30 Canada: building permits (June)
  • 16:45 US: services PMI (July); 17:00 ISM non-manufacturing PMI (July)
  • 17:30 US: EIA weekly petroleum status report

Euro stuck in sideways trend near 55-day SMA

Current outlook

Major currencies have been moving in positive territory against the US dollar. By the time of writing, the single currency was worth $1.1874. The price action is hovering around the balance line (55-day SMA) without breaching Friday’s trading range (July 30).

Market participants will also be watching today for the release of EU business activity data. If the readings do not let down the bulls, we can expect EURUSD to retest the 1.1887 level.

Judging by the behavior of market participants in recent days, it may be assumed that there will not be any sharp moves until Friday. On the daily TF, the last two candles closed with long upper shadows. If the bulls fail to gain a foothold above 1.1887, we can expect the price action to retreat to 1.1830. The 45-degree angle (1.1855) is a strong support level.

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