FXStreet (Edinburgh) – The single currency has seen a rebound following the stellar print of US Non-farm Payrolls on Friday, retaking the 1.09 handle albeit struggling around 1.0950/60 so far.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted spot “steadied throughout the week, it saw no follow through on the downside and is trading back above 1.0819/1.0796 (May low, the July low, the 7 th December low), the near term resistance line has been eroded. The intraday Elliott wave counts have turned more positive and we would allow for a probe into tougher resistance”.
Furthermore, Senior Analyst at Danske Bank Jens Pedersen suggested “Friday’s move higher in EUR/USD and thus a negative correlation to equities was in line with the correlations seen in 2015 when EUR was increasingly viewed as funding currency. We think the negative correlation between EUR/USD risk appetite will continue to dominate, suggesting that risk remains skewed to the upside for EUR/USD”.
(Market News Provided by FXstreet)