FundamentalOverviewThe USD recovered some ofthe losses triggered by Powell’s dovish tilt at the Jackson Hole Symposium. Tradersare now focused on the US labour market data due next week that will culminatewith a crucial NFP report on Friday. In fact, the data will influence interestrates expectations greatly.Right now, the market ispricing an 89% probability of a rate cut in September and a total of 55 bps ofeasing by year-end. Strong data might take the probability for a September cuttowards a 50/50 chance but will certainly see a more hawkish repricing furtherdown the curve and support the dollar. Soft data, on the other hand, willlikely see traders increasing the dovish bets with a third cut by year-endbeing priced in and weighing on the greenback.On the EUR side, the currencyweakened across the board in the first part of the week due to some Frenchpolitics drama. On Monday, the French Prime Minister called for a confidencevote on September 8 and the markets priced in a collapse given that he’sexpected to lose. Other than that, we haven’t got anything new in terms offundamentals. Many ECB members are nowtaking a much more neutral approach to rate cuts. They will need significantnegative data to force them to cut further. The market is pricing just 9 bps ofeasing by year-end and 20 bps by the end of 2026, which indicates that theeasing cycle might have already ended. EURUSD TechnicalAnalysis – Daily TimeframeOn the daily chart, we cansee that EURUSD rejected the major trendline around the 1.1740 level and eventuallypulled all the way back to the key support around the 1.16 handle. That’swhere the buyers stepped in once again to position for a rally back into thetrendline. The sellers will need a break below the support to open the door fora drop into the 1.14 handle next.EURUSD TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee more clearly the strong bounce from the 1.16 support. We now have the mostrecent swing high at 1.1664 that could act as resistance. That’s where we canexpect the sellers to step in with a defined risk above the level to positionfor a break below the 1.16 support. The buyers, on the other hand, will lookfor a break higher to increase the bullish bets into the major trendline.EURUSD TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we can see that we have the most recent swing low around1.1627 that act as support. Overall, the price action will likely be messy aswe head into the key US labour market data, so we could see many fakeouts. Nonetheless, we can expect the buyers to step in at the minor support witha defined risk below it to position for a rally into the major trendline. Thesellers, on the other hand, will look for a break lower to position for a dropback into the 1.16 support. The red lines define the average daily range for today.UpcomingCatalystsToday we get the latest US Jobless Claimsfigures. Tomorrow, we conclude the week with the preliminary inflation data forthe major Eurozone economies and the US PCE price index. This article was written by Giuseppe Dellamotta at investinglive.com.