The EUR/USD pair plummeted for a third week in a row, down to 1.0703 this Friday, amid a shockingly positive US employment report. Ending the week at levels not seen since late April and below the 1.0800 level, the pair seems to have set the tone for the rest of the year, or at least, until the December FED's meeting, as all of the ongoing dollar's strength is based on speculation that the US Central Bank will raise its rates then.
The EUR/USD pair has corrected some this Monday, bouncing from the multi-month low posted last Friday at 1.0703. Data released in Europe showed that the German foreign trade balance showed a surplus of 22.9 billion euros in September 2015, whilst exports and imports jumped well above expected in September, reversing the declines from previous months. Helping the EUR advance are local equities, down after the opening.
The US will release some minor employment data later on today, while Rosengren, from the FED, is scheduled to give a speech by the end of the American session.
View the Live chart of the EUR/USD
The pair maintains its dominant bearish trend, as in the 4 hours chart, the 20 SMA continues heading south above the current level, providing an intraday resistance around 1.0830, whilst the RSI indicator has barely recovered from oversold levels before turning flat well into the red. In the same chart, the Momentum indicator advances below its mid-line, but the lack of follow through in price suggests that the upward potential remains well limited.
An upward acceleration above 1.0780, should lead to a continued advance up to the mentioned 1.0830 region, where selling interest should contain the advance. The main support for today is the 1.0700 figure, with a break below it required to confirm additional declines, down to the 1.0660 price zone.
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