EUR/USD Forex Signal 10/09: To Hit $1.200 (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the EUR/USD pair and set a take-profit at 1.200.
• Add a stop-loss at 1.1595.
• Timeline: 1-2 days.

Bearish view

• Sell the EUR/USD pair and set a take-profit at 1.1595.
• Add a stop-loss at 1.200.

The EUR/USD exchange rate pulled back after Israel attacked Qatar and France's Emmanuel Macron appointed the new prime minister. It also retreated after the US published another weak jobs report. It was trading at 1.1705, down slightly from this week's high of 1777 Dollar Rises Amid Geopolitical Tensions

The EUR/USD pair retreated because of a few catalysts. One of them was in the Middle East, where Israel launched an attack against Hamas leaders in Qatar, risking a continued escalation and higher inflation.

Meanwhile, in France, Emmanuel Macron appointed Sebastien Lecornu as the new prime minister following the ouster of Francois Bayrou. He has now become the fifth prime minister in two years.

In a statement, the Bank of France hinted that the economy will continue doing well this year. It expects that it will grow by 0.3% this quarter, helped by key sectors like aerospace and equipment manufacturing.

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These developments came as the European Central Bank (ECB) prepares to deliver its interest rate decision. Economists expect that the bank will maintain interest rates steady in this meeting.

The EUR/USD pair also reacted to a report by the Bureu of Labor Statistics (BLS), which offered a downward revision to the US jobs numbers. This report showed that the economy created far lower jobs than reported in the year through March.

The number of workers on payrolls was reduced by 911,000, higher than what analysts were expected. These numbers confirmed that the recent softness in the labor market has been going on for months.

Looking ahead, the BLS will publish the latest Producer Price Index (PPI) data later on Wednesday. It will then publish the August consumer inflation data on Thursday.

The Fed is expected to cut rates next week, leading to a divergence with the ECB that may push the EUR/USD pair to the resistance at 1.200.

EURUSD Chart by TradingViewEUR/USD Technical Analysis

The daily timeframe chart shows that the EUR/USD pair has been in a bullish trend since January, when it bottomed at 1.0180. It peaked at the year-to-date high of 1.1830 in July and then pulled back to 1.1390, the top of the trading range of the Murrey Math Lines.

The pair has recently formed an inverse head-and-shoulders pattern and is attempting to retest the neckline. It is also at the ultimate resistance point of the Murrey Math Lines.

Therefore, the pair will likely continue rising as bulls target the psychological point at 1.2000.

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