EUR/USD ends week flat, hovering around 1.2300

  • Euro continues to move sideways against US dollar after ECB, NFP. 
  • Pair heads for third weekly close around the 1.2300 area. 

EUR/USD rebounded on Friday and erased daily losses. It was about to end practically at the same level it had a week ago. 

The pair bottomed on Friday after the release of the US employment report. According to it, the economy created 313K jobs in February surpassing expectations. On the negative side, average hourly earnings rose 0.15% and 2.6% from 12 months ago (below 0.2% and 2.8% expected). 

After the report, EUR/USD dropped to 1.2273, the lowest level since Monday. Then rebounded and during the American session rose to 1.2335, printing a fresh daily high. Near the end of the day, it was hovering slightly above 1.2300, flat for the day and the week. 

Outlook 

EUR/USD continues to move sideways on a wider perspective. Despite fears of a trade war, the ECB removal of the easing bias and NFP numbers, the pair was unable to move away from the 1.2300 area. 

The euro is consolidating at the highest level since 2014, after rising sharply during January. The rally was capped by a long-term dynamic resistance located around 1.2500, a downtrend line from 2008. The chart shows the pair undecided and without clear signals about the direction of the next move: correction or another leg higher. 

Next week data includes CPI and retail sales in the US and wage growth and (final) CPI in the Eurozone. 
 

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