The EUR/USD pair is testing the Bollinger bands midline at 1.1750, while the US currency is under pressure amid labor market data.

The euro has been mixed in the EUR/USD pair during the Asian session, consolidating near 1.1720. Investors are focusing on German Retail Sales statistics, which show that the figure fell in August from 2.9% to 1.8% year-on-year and from –0.5% to –0.2% month-on-month, while analysts had expected 0.6%. 

The price is in a correction, and a fall is possible.

On the daily chart, the upward third wave of the highest level 3 of (А) develops, within which the first entry wave of the lowest level i of 3 formed, and the correctional second wave ii of 3 develops. Now, the correctional wave b of ii has ended, and the downward wave (c) of ii has started. If the assumption is correct, the EUR/USD pair will fall to the area of 1.1380–1.1060. In this scenario, the critical stop loss level is 1.1914.

The EUR/USD pair is falling toward 1.1670 amid a strengthening American dollar following the US Fed’s first interest rate cut in eight months, by 25 basis points to 4.25%.

The EUR/USD pair remains in a corrective trend at 1.1751 and may continue to decline amid the strengthening of the American dollar and poor EU macroeconomic data.