Euro To Jump Higher Says Commerzbank

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Euro To Jump Higher Says Commerzbank

Euro To Jump Higher On Strong Wage Growth, Says Commerzbank

In the last few weeks, the market's attention has been on the data releases and other news from the US side. However, today's wage indicator from the ECB could provide some price action for the EUR/USD.

The ECB will release the wage data for the 4th quarter, providing insight into the EU's labour market. Commerzbank says the Euro (EUR) will get on the back foot due to weak wage data.

1.08 Remains Important For Eur Bulls

Conversely, more robust wage data will enable the Euro to turn higher against other FX currencies. Another scenario is a sharp decline in the Euro, which can only materialize if the wage data is way too low, which is almost impossible.

strong reading of the wage indicator will signify that the wages have stabilized in the EU region. In the near past, the data from this indicator has shown a reversal trend that remains in effect. A good reading will also mean the recent statements made by the officials of the ECB are no longer valid.

Although the data is essential for the EUR/USD, its severity can't be compared with NFP, US CPI, or interest rate decisions.

EUR/USD is very close to the 1.0800 handle. This month alone, the pair has crossed the 1.0800 resistance two times but failed. Now, the EUR/USD is getting ready to test the 1.08 for the third time.

closer look at the EUR/USD also reveals that an inverse head and shoulder has formed with the neckline at 1.08. Once again, even this chart pattern reveals the importance of the 1.08 handle for the pair.

In case of a successful break of the 1.08 handle, the next stop will be around 1.09 or higher.

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