EURUSD – Euro At Risk of Further Declines Vs Dollar
|Key Highlights
The Euro declined this past week against the US Dollar due to a strong NFP figure in the US.
There was a crucial bullish trend line formed on the hourly chart of EUR/USD, which was broken at 1.0600 for more downsides.
The US nonfarm payrolls released by the US Department of Labor this past Friday posted a better than expected reading of 178K in Nov 2016.
The US Unemployment Rate posted a decline from the last reading of 4.9% to 4.6% in Nov 2016.
EURUSD Technical Analysis
The Euro declined heavily before closing this past week against the US dollar due to positive NFP numbers in the US. More losses are likely in the EURUSD pair going forward.
During the downside move, the pair broke a crucial bullish trend line formed on the hourly chart at 1.0600. The pair also closed below the same, which means the Euro sellers have control at the moment, and may push the pair further down.
The pair is currently correcting higher, but likely to face sellers near the 50% Fib retracement level of the last decline from the 1.0689 high to 1.0506 low, which is also coinciding the broken trend line at 1.0600. In short, the broken support may now act as a resistance for EURUSD.
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