EUR/USD: the pair is rebounding from a low, but a bearish bias persists

The EUR/USD rebounded once again ahead of the release of the important US Non-Farm Payrolls (NFP) report, but the pair remains bearish.

The EUR/USD currency pair fell in 2021. It started the year above 1.23 and fell to 1.17 and below. The downtrend is visible in other currency equivalents as the US dollar has strengthened this year, which is somewhat strange considering the bullish stock markets.

From a technical perspective, EUR/USD is finding solid support in the 1.17 area, while 1.19 is acting as a key upside level. As we await Friday's NFP report, the pair is trading with a bid tone, but the overall situation remains bearish.

Impulsive G3 Credit Suggests EUR/USD Will Have Trouble Advancing

This week, a number of European Central Bank (ECB) members have expressed concerns about easy monetary conditions in the Eurozone. The ECB hawks, as they are known, have every right to express their concerns. After all, inflation in the Eurozone is very high. In Germany, for example, it has reached its highest level in a decade, triggering a shift in household spending towards commodities. According to recent data, German households bought a record number of gold bars in 2021.

Although the recent price action in the EUR/USD pair is bullish, the overall picture looks bearish. A week before the ECB meeting, the G3 credit impulse suggests that the EUR/USD will have a hard time advancing.

The two are correlated, the only thing to consider being that the credit impulse has a 12-month lead. For this reason, the bias remains bearish, and investors will likely sell a move towards 1.19 triggered by the NFP report.