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.

Pablo Piovano FXStreet

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).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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