EUR/USD loses momentum and drops to the 1.2130 area post-NFP
|- EUR/USD remains bid in the upper-1.2100s following US jobs data.
- US Nonfarm Payrolls came in at 245K in November.
- US unemployment rate eased to 6.7% during last month.
EUR/USD stays bid in the upper end of the recent range although it still trades below the 1.2200 mark after the release of the US jobs report.
EUR/USD keeps targeting 1.2200
EUR/USD meets once again resistance in the 1.2170/80 band at the end of the week, always against the backdrop of prevailing risk appetite trend in the global markets despite some mild recovery in the buck.
In fact, the greenback picks up some pace in spite of the downbeat results from the US docket. Indeed, Nonfarm Payrolls showed the US economy created “just” 245K jobs in November, badly missing forecasts. On a brighter side, the jobless rate ticked lower to 6.7% (from 6.9%).
Additional data saw the trade deficit widening a tad to $63.10 billion in October, while Factory Orders are due later along with speeches by FOMC’s Charles Evans and Michelle Bowman.
What to look for around EUR
EUR/USD keeps the march north unabated and it gradually approaches the 1.2200 barrier, always against the backdrop of a favourable context in the risk complex. In the very near-term, EUR/USD appears supported by prospects of a strong recovery in the region along with the increasing likelihood of extra stimulus in the US. Risks to this positive view emerge from the potential political effervescence around the EU Recovery Fund and increasing chances of further ECB easing to be announced as soon as at the December meeting.
EUR/USD levels to watch
At the moment, the pair is gaining 0.01% at 1.2140 and a breakout of 1.2177 (2020 high Dec.4) would target 1.2413 (monthly high Apr.17 2018) en route to 1.2476 (monthly high Mar.27 2018). On the downside, the next support is located at 1.1920 (high Nov.9) seconded by 1.1800 (low Nov.23) and finally 1.1745 (weekly low Nov.11).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.