Market Analysis: EUR/USD Accelerates Gains from 2.5-month Low

This was facilitated by disappointing data on the US labor market. According to the Bureau of Labor Statistics, the number of new vacancies has fallen sharply: actual —  8.8 million, forecast — 9.4 million new vacancies. The last time the value of the indicator fell below 9 million was in the spring of 2021.

The news came as a big surprise, which sent the dollar index down sharply. Accordingly, USD-denominated shares and gold rose, as well as exchange rates traded against the dollar.

The EUR/USD chart shows that:
→ the price accelerated yesterday's rise from the 2.5-month low set on August 25;
→ the price continues to be supported by the lower line of the rising channel;
→ the price continues to be supported by SMA (100);
→ the presence of bears may appear near the lines of the descending channel (shown in red).

The bulls will consolidate their success if they manage to keep the price of EUR/USD above the level of 1.086, from which resistance can be expected. Decrease in the number of vacancies is a leading indicator of the state of the economy. If market participants receive more signals about the slowdown in the US economy, this could lower the USD against other currencies even more.

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