EUR/USD exhibits strength as growing speculation for Fed rate cuts in September weighs on the US Dollar. US labor market conditions appear to have lost momentum. Unexpected progress by the left wing in French elections has increased uncertainty over the economy’s fiscal outlook. The major currency pair remains firm as the US Dollar is under pressure due to growing speculation that the Federal Reserve will start lowering interest rates at the September meeting.
The major currency pair strengthens after stabilizing above the 20-day and 50-day Exponential Moving Averages , which trade around 1.0750 and 1.0770, respectively. The overall trend of the shared currency pair has also strengthened as it has jumped above the 200-day EMA, which trades around 1.0800. The Symmetrical Triangle formation on the daily timeframe exhibits a sharp volatility contraction, which indicates low volume and narrow ticks. The 14-day Relative Strength Index reaches 60.00.