The pair is likely to continue to consolidate till the release of the NFP data
The EURUSD pair sunk to the lows of its range over the last 24 hours as the dollar was choppy across the board. With the lack of much news over the last few days, the dollar has been choppy at best and this led to it gaining against certain currencies while it has failed against certain others and this has led to a situation where the dollar seems to be having no specific trend.
There was not much data from the US or the Eurozone and as we had mentioned in our forecasts since the beginning of the week, there is a likelihood that the traders would be happy to let the pair consolidate and range till towards the end of the week when the employment data from the US is scheduled to be released. We believe that this piece of data would provide the much needed direction for this pair.
The data from the US over the last few weeks have been quite strong and the market would expect this to continue in the short term as it is important for it to be so to encourage the Fed to keep believing in accelerated rate hikes. If this does not happen, the dollar, which is already under pressure from the various geopolitical issues surrounding the trader war between the US and China, would come under additional pressure and this could provide the much needed boost for the euro bulls.
Looking ahead to the rest of the day, we have the ADP employment data which serves as the precursor to the NFP that comes in on Friday. There is also the ISM non-manufacturing PMI data as well and either of these data is likely to bring in a lot of volatility to this pair during the course of the day. There is unlikely to be a breakout in either direction in this pair but we will wait and see who picks the baton and runs.