The EUR/USD pair closed the day above the 1.0900 with some limited intraday gains, helped by a US report showing that the monthly job cuts reached its highest level since 2011, as employers announced plans to shed 105,696 workers in July.
Usually not a big market mover, the report became relevant ahead of the US NFP report. Weekly unemployment claims came out better than expected, printing 270K in the week ending July 31 against a forecast of 277K, but above the previous week reading of 267K.
The dollar traded generally lower during all of the American session, but contained within its recent range against the EUR, as investors switched to wait-and-see mode ahead of the release of the US Nonfarm Payroll report early Friday.
Technically, the 1 hour chart shows that the pair is unable to advance beyond its 100 SMA, whilst the technical indicators have turned lower around their mid-lines, lacking bearish strength, but at least suggesting the upside will remain limited.
In the 4 hours chart the price is hovering around a bearish 20 SMA, the Momentum indicator heads south below its 100 level, and the RSI indicator hovers around 48, supporting the shorter term view, and maintaining the risk towards the downside.
Meanwhile the USD/JPY pair has spent most of the day consolidating below the 125.00 level, extending its decline intraday down to 124.59, dragged lower by a sharp decline in Wall Street. The limited retracement in the pair is due to the upcoming release of US employment figures, which will determinate whether the pair may reach a fresh year high, or lose the 124.00 level once again.
In the meantime, the 1 hour chart shows that the price remains well above its 100 and 200 SMAs, but that the technical indicators have retreated from their mid-lines, and maintain a bearish bias, and supporting a slide down to 124.45, the immediate support.
In the 4 hours chart, the price is well above its moving averages, the Momentum indicator holds above the 100 level, and the RSI indicator turned slightly lower from overbought readings, now around 60, supporting a limited slide as seen in the shorter term.