EUR/USD shows no signs of a convincing recovery, parity in the crosshairs

EUR/USD has dropped below 1.0100 for the first time in nearly 20 years. In the view of FXStreet’s Eren Sengezer, it would not be surprising to see the euro hit parity against the dollar at this point.

Focus shifts to June Nonfarm Payrolls data from the US

“An upbeat NFP print coupled with strong wage inflation could provide a boost to the dollar. On the other hand, disappointing figures could trigger a dollar selloff but the currency's weakness is likely to remain short-lived with investors seeking refuge in that scenario.”

“The descending regression channel coming from late-June stays intact and the pair's technical correction is likely to meet resistance at the upper limit of that channel at 1.0150. With a four-hour close above that level, EUR/USD could extend its recovery toward 1.0200 (psychological level, static level, 20-period SMA).”

“On the downside, interim support seems to have formed at 1.0070 (static level) before the pair could target the all-important parity.”

See – NFP Preview: Forecasts from 10 major banks, labour market loses momentum