Investing.com – EUR/USD continues to waver around 1.09 on Tuesday morning as forex traders keep dry powder ahead of key economic data release later in the week.
Recall that on Monday, the Eurozone manufacturing PMI slightly below expectations briefly took the currency pair below 1.09, with a low at 1.0870.
On Tuesday, the economic calendar will be empty of important statistics for EUR/USD, especially due to the Independence Day holiday in the United States.
On the other hand, tomorrow will be marked by the publication of the Fed Minutes, while Thursday will be the occasion for the ADP report (EPA:ADP). But we will have to wait until Friday to see the most important statistic of the week for the EUR/USD, namely the NFP report on non-farm payrolls.
These events could have an impact on expectations for the July 26 Fed meeting, for which the market is pricing in an 88% chance of a 0.25% rate hike.
Disappointing US employment data could reduce this probability, to the detriment of the Dollar and to the benefit of EUR/USD.
Technical thresholds to watch on EUR/USD
From a chart perspective, the next support for EUR/USD will be the area formed by last Friday's low at 1.0834 and the 100-day moving average, currently at 1.0821.
Lower the psychological thresholds of 1.08 and 1.07, then the end of May trough at 1.0635 will be the next potential supports .
On the upside, the major psychological level at 1.10 and the June 22 high at 1.1012 form the first significant resistance, ahead of this year's high at 1.1095 and the psychological level at 1.11.EUR/USD remains hesitant at the start of a US holiday, and ahead of key statistics