EURUSD keeps appreciating and extends beyond 0.9950

Euro recovery extends to 0.9960 and erases losses from the previous four days.
US unemployment and wage growth data send the US dollar tumbling.
EURUSD: Further decline to 0.9500 is still likely – Rabobank.

Guillermo Alcala FXStreet

The euro has squeezed higher during Friday’s US afternoon trading, with the pair reaching session highs at 0.9960 so far. The common currency has erased the previous four days’ losses with a shocking 2.2% daily rally, turning positive on the weekly chart.

US unemployment and wage growth data have crushed the dollar

The US Dollar accelerated its downtrend earlier today, following the release of October’s employment report. Non-Farm Payrolls data have beaten expectations with a 261K reading, beyond the 200K consensus, and with September's record revised up to 315K from 264K.

On the other hand, the unemployment rate increased to 3.7%, from 3.5% in September, and wage inflation slowed down to 4.7% from 5%. These embryonic signs of a potential easing in the labor market conditions have brought back the theory of slower rate hikes in December, sending the US dollar tumbling across the board.

EURUSD: A decline to 0.95 is still likely– Rabobank

Currency analysts at Rabobank remain bearish on the pair and maintain their view of further decline towards 0.9500: “It is our view that the EUR is not fully priced for the headwinds facing the Eurozone economy (…) We continue to see risk of a fall in EURUSD to 0.95 in the weeks ahead and see the potential for the EUR to stay weaker for longer vs. the US Dollar.”

Technical levels to watch

EUR/USD

Overview
Today last price	0.9955
Today Daily Change	0.0206
Today Daily Change %	2.11
Today daily open	0.9749

Trends
Daily SMA20	0.9833
Daily SMA50	0.9879
Daily SMA100	1.0058
Daily SMA200	1.0476

Levels
Previous Daily High	0.984
Previous Daily Low	0.973
Previous Weekly High	1.0094
Previous Weekly Low	0.9807
Previous Monthly High	1.0094
Previous Monthly Low	0.9632
Daily Fibonacci 38.2%	0.9772
Daily Fibonacci 61.8%	0.9798
Daily Pivot Point S1	0.9706
Daily Pivot Point S2	0.9663
Daily Pivot Point S3	0.9596
Daily Pivot Point R1	0.9816
Daily Pivot Point R2	0.9882
Daily Pivot Point R3	0.9925

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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