The Euro pair has extended its progress in the European session today. The major currency pair is fighting for new traces after falling for three days while the previous day, do not forget that the pair reached its lowest consolidation phase in 15 months. The current resolution among EUR / USD traders may be linked to the recent resurgence of the US dollar, in the midst of a volatile mood, as opposed to the suspicion of Fed tapping and the absence of bond traders. The US dollar index (DXY) also consolidated its Friday losses.

Traders from the United States may have seen some temporary relief as senators raised the debt ceiling in early December. Meanwhile non-farm payrolls increases for non-agricultural wage earners have become more complex as the unemployment rate has fallen. It may have opened the door to Fed policy tapping in November. For the upcoming week September US CPI print will be the key. Elevated price pressures could open the door to a central bank around capital. FOMC meeting minutes is also at focus. Meanwhile, the earnings period begins with the reporting of major US banks, including the Bank of America and Citigroup.

On Friday, Markets were disappointed with the headline of Non-Farm Payrolls (NFP) markets with 194K figures, much lower than around 500K expected. It should be noted, however, that the previous reading received an upward correction of 366K. On the other hand unemployment rate fell to 4.8%, 5.1% expected and 5.2% earlier, easing pain, while average hourly earnings exceeded 0.4%, correcting previous readings from 0.4% to 0.6%.

With regard to the lighter calendar and the US holiday, risk triggers are important ahead of Wednesday’s inflation data from Germany on Wednesday and the recent monetary policy meeting of the US and Federal Open Market Committee (FOMC). Previous day, the greenback gauge was weighed by the US job report for September. Challenging the quote may be the latest fears for US economic growth. However, it also joins the geopolitical fear of keeping central bank buyers confident. Alternatively, disappointment from the US Nonfarm Payrolls combats favorable Unemployment Rate and Average Earnings to confuse traders.

The ambiguity on the board of the European Central Bank (ECB) along with the performance of the US dollar, is compounded by fears of policymakers’ refusal to weigh EUR/USD prices on the central bank’s next move. The ZEW index is the only indication of the German economic sentiment coming up on Tuesday, towards the economic data to be released in Tuesday. Also on the calendar are the final figures for German inflation in September and Eurozone industrial production for August-Wednesday and Eurozone trade data for August-Friday will entertain the traders.

EUR/USD 4 Hour Chart:

Support: 1.1547 (S1), 1.1522 (S2), 1.1503 (S3).

Resistance: 1.1592 (R1), 1.1611 (R2), 1.1636 (R3).

Amidst these above catalysts the Euro seems on uptrend against greenback. We expect a bullish trend for EUR/USD.