Dollar Bears Return Amid Poor JOLTs Data

• US job openings fell for the third straight month in March.

• Investors expect US interest rates to rise later today.

• Data reveals eurozone banks are cutting lending.

Today’s EUR/USD price analysis is bullish. The dollar fell on Wednesday after a negative jobs report. Data on Tuesday showed U.S. job openings fell for the third month in a row in March.

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At the same time, the number of layoffs reached a record high. Labor market weakness may help the Fed fight inflation.

The report comes as investors try to decide whether the Fed will pause rate hikes at its meeting. Later in the day, investors expect US interest rates to rise. Still, given recent market developments, I’m not sure how long the Fed will maintain its tight monetary policy.

The euro rose against the dollar after declining to its lowest level since April 21st.

Currencies plummeted after data revealed eurozone banks were slashing lending, leading a key inflation indicator to finally drop. These reports support calls for a more gradual rate hike by the European Central Bank on Thursday. Investors are betting on a possible rate hike of 50bps.

The euro has shown significant gains since mid-March. The rise was driven by the assumption that the euro-dollar interest rate differential will continue to narrow.

EUR/USD major events today

Investors expect some key economic announcements from the US. The United States publishes data on business activity and individual employment. However, the focus is on his FOMC meeting.

EUR/USD Technical Price Analysis: Bulls Approaching 1.1050 Resistance

The EUR/USD pair is approaching the 1.1050 resistance level on the 4-hour chart. The short-term bias is bullish as the price is above the 30-SMA and the RSI is above 50. A bullish move occurs after the price finds support at the 1.0949 level.

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A sharp reversal at this level has pushed the price above the 30-SMA. However, this bullish move may not go much further as the price will soon face resistance at 1.1050. The bears are likely to return to this level as the price moves sideways on a larger scale. On the other hand, a breakout would solidify the bullish bias.

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