06/01/26

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The EUR/USD currency pair is trading near a multi-week low of approximately 1.1473, remaining confined within a narrow intraday range. Market participants are awaiting key economic data from the United States, including the private sector employment figures and the ISM Services Purchasing Managers’ Index (PMI), which are expected to influence short-term directional moves.

The upcoming U.S. employment report projects an increase of 25,000 jobs in October, a significant reversal from a previous decline of 32,000 jobs in September. Alongside this, the ISM Services PMI is anticipated to improve slightly to around 50.8, up from the previous reading of 50.0. If these figures come in stronger than expected, they could bolster the U.S. dollar’s positive bias, although the impact on monetary policy is likely to be limited, as the Federal Reserve continues to adopt a cautious stance amid economic uncertainties and subdued labor market performance.

Meanwhile, in the Eurozone, recent data revealed a modest contraction in producer prices, with a 0.1% quarterly decline and a similar annual decrease of 0.2%. This aligns with expectations and suggests limited inflationary pressures at the producer level. Additionally, final estimates of the Eurozone’s services and composite PMIs have been revised upward, with the services sector confirming expansion at 54.6 in Germany and reaching 53 in the broader EU index. The revised Eurozone services PMI stands at 53, reflecting an optimistic tone within the region’s services industry.

Political developments in the United States continue to generate market caution. Democratic victories in multiple state elections have offset some market optimism, while recent commentary from political figures has kept volatility elevated. Notably, President Donald Trump attributed recent political losses partly to the ongoing government shutdown, the longest in U.S. history.

From a technical perspective, the EUR/USD remains under bearish pressure. Short-term indicators on the four-hour chart suggest that sellers control the market, with resistance around 1.1511. The daily chart underscores the dominance of bearish momentum, with key moving averages pointing downward and the Relative Strength Index remaining below the neutral threshold, indicating limited scope for an immediate recovery unless prices break above resistance levels around 1.1597–1.1665. A daily close below the 1.1470 support level could signal further downside potential.