However, the recently disappointing data of the U.S. non-farm payrolls released last Friday fueled uncertainty about the Federal Reserve tapering of quantitative easing stimulus. This program implementation was highly anticipated in September by the financial market players.
We then expect two scenarios :
First one , Fed decides to continue the current policy, the U.S. dollar will be expected to decline and the EUR/USD pair will then rise to reach the first resistance area around $1.3500.
Alternatively, the Federal Open Meeting Committee (FOMC) decides to reduce the purchase of assets in the financial markets, the greenback will then benefit compared to the other majors. We will expect the EUR/ USD decline to reach the support area of $1.3085 and then $1.2800.
Therefore, we highly recommend monitoring the evolution of Fed policy on September 17th and 18th which will have a significant impact on the financial markets and the currency prices direction.