EUR/USD Forecast: Euro shows no signs of a recovery

• EUR/USD trades below 1.0800 to start the week.
• Near-term technical outlook suggests that the bearish bias remains intact.
• ISM will release Services PMI data for January later in the day.

EUR/USD stays on the back foot and trades below 1.0800 in the European morning on Monday. The pair’s technical outlook shows no signs of a potential rebound as the US Dollar (USD) preserves its strength.

EUR/USD fell sharply in the second half of the day on Friday and closed the week in negative territory. After the data from the US showed that Nonfarm Payrolls rose by 353,000 in January, surpassing the market forecast of 180,000 by a wide margin, the USD registered big gains against its major rivals. According to the CME FedWatch Tool, the probability of a Federal Reserve (Fed) rate reduction in March is about 15%, down from 30% early Friday.