The EUR/USD pair finally halted its post-ECB rally at 1.0980, having advanced a whopping 480 pips ever since the event started. The pair retreated some 100 pips during the Asian session, and consolidates around the 38.2% retracement of these last two months decline, ahead of the release of the US Nonfarm Payroll report. The country is expected to have added 200K new jobs in November, a good number, but below October shockingly positive 271K. The unemployment rate is expected to hold at 5%.
With the Federal Open Markets Committee getting ready to raise rates for the first time in almost a decade, a strong jobs report should put the Central Bank one step closer to the lifting decision, although as remarked several times, the key for a rate hike is inflation and not employment.
View the Live chart of the EUR/USD
Anyway, the key support for the pair is now 1.0830, and a break below it with some encouraging US data, can see the pair sliding down to 1.0780 first, whilst a downward acceleration below this last can see the pair extending down to 1.0735, the 23.6% retracement of the same decline.
A disappointing reading on the other hand, can see the pair blowing past 1.0940 and rally up to 1.1000, the 50% retracement of the same decline, and the level to break to see the EUR extending its rally into next week.
Latest updates on the EUR/USD Forecast
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