July 07, 2023 11:1 AM

EUR/USD Price Analysis: On the hourly time period bears

EUR/USD Price Analysis: On the hourly time period bears

The EUR/USD has been carving out the upside on Thursday, which might be setting up a Friday set-up as volumes begin to get caught up high inside the week's range. Meanwhile, the US Dollar fell following a brief rally on Thursday, as statistics revealed that the US labor market is still hard. This comes ahead of the Nonfarm Payrolls report on Friday.

Forex is being driven by futures market sentiment, which has increased the chance of the Fed raising interest rates by 25 basis points to 92.4% when policymakers end a two-day meeting on July 26, according to the CME Group's FedWatch Tool on Thursday.

EUR/USD H1 charts

Zooming in on the hourly chart, if the 1.0900 regions hold up following a move into trendline liquidity, we might be in for a break to the downside for the day ahead, according to the weekly pattern.

The first three days of the week, which reset as a new three-day cycle on Wednesday, saw a blow-off from below-trapped levels up high, and we may see the same dynamic play out again on Friday, as seen above. A break below the higher volumes and trendline support will go for the low-hanging fruit (LHF) below.