Updated U.S. labor market data will be released next week. If they again show weakness—which is the more likely scenario—expectations for an imminent interest rate cut will rise once more.

Next week, updated U.S. labor market data will be published. If they once again indicate weakness, as is most likely, expectations of a near-term interest rate reduction will increase, which could support the pair and allow it to rise toward the upper boundary of the medium-term upward trend.

From a technical perspective, the pair is consolidating while trading below the 1.1830 resistance level. A breakout above this level would open the way for further growth.

Technical picture and trading idea:

The price is above the middle line of the Bollinger Bands, as well as above the 5-period and 14-period simple moving averages (SMA), whose crossover generates a buy signal. The RSI is above the 50% level, also signaling a buy. The Stochastic indicator is rising and crossing above the 50% level.

A move above 1.1830 could lead to growth toward 1.1925 as early as next week. The 1.1840 level may serve as an entry point for long positions.