EUR/USD showed a minor pullback after weak US economic data. It hit an intraday high of 1.14342 and currently trading around 1.14228.
With only medium-sized businesses displaying significant expansion, the US private sector saw a shockingly low addition of just 37,000 jobs in May 2025, the least in more than two years and far below expectations, while other industries were mixed or negative, leading President Trump to request for Federal Reserve rate cuts. Combined with a fall in the ISM Services PMI to 49.9, indicating the first contraction in the US services sector since June 2024, these poor employment statistics point to a worrying slowdown in the biggest sector of the American economy and raise wider economic problems since both manufacturing and services show signs of weakness.
Technical Analysis of EUR/USD
The pair is holding above the short and long-term moving average in the hourly chart. Near-term resistance is seen at 1.1450; a break above this may push the pair to targets of 1.1500/1.1600. Major bullish momentum is likely only if prices can break above the 1.160 target of 1.1660. On the downside, support is seen at 1.1350 any violation below will drag the pair to 1.1265/1.1200/1.1150/1.1090/1.1050/1.100.
Market Indicators and Trading Strategy
Commodity Channel Index (CCI)- Bullish
Average Directional Movement Index (ADX) - Bullish
It is good to buy on dips around 1.1400 with a stop-loss at 1.1350 for a target price of 1.1500/1.1600.
