EUR/USD on Verge of Downward-Trendline Breakout

The EUR/USD pair is trading around 1.1550 against the US Dollar during the European session on Monday, despite the US Dollar's early recovery.

Market experts note that this recovery lacks conviction, as traders have dialed down hawkish Federal Reserve (Fed) bets following the United States' Nonfarm Payrolls (NFP) data release.

Rabobank analysts argue that Friday's US employment report has further eroded the case for additional Fed tightening, citing a -23,000 jobs print and a 37,000 downward revision to the June estimate.

The analysts note that this evolving backdrop could strengthen the argument of the Fed's doves, even if the policy debate remains open.