EUR/USD ahead August's US NFP data: is the ground ready for a rate hike in September?
A rate hike by the Fed is on the discussion's board nowadays and traders will be looking for hints at today's US NFP data, to be released at 12:30 GMT and analysts are expecting a decrease from 255,000 jobs to 180K. That number shouldn't help to provide a clear timing for the rate hike, but the fact of the matter is that it's highly possible to have one before the end of 2016. If numbers come above the expectations, then maybe a hike during Fed September's meeting can happen.
The technical view for EUR/USD at H4 chart is showing a rebound from the 200 SMA and we also have a bullish trend line in place, that is helping to give fresh bullish momentum to the pair. A strong resistance zone can be seen at the 1.1224 level, where a weaker-than-expected NFP number should produce a breakout higher in order to reach the 1.1350 handle. However, if we see positive data, then a breakout below the 1.1135 level should happen in order to test the 1.1050 zone.