FXStreet (Edinburgh) – The shared currency has recovered the 1.08 mark and has pushed the pair to session highs near 1.0830 in a risk-off context and ahead of tomorrow’s US Non-farm Payrolls.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “has seen little follow through on the downside following the erosion of key nearby support at 1.10819/1.0796 – this represented the May low, the July low, the 7 th December low and the break down through here is expected to trigger another leg lower to the 1.0523 recent low (favoured). However Intraday rallies are indicated to fail circa 1.0830 and the chart will remain offered while below 1.0944 (resistance line)”.
In addition, Chief Analyst Jakob Christensen at Danske Bank noted “Today focus will be on Fed speakers following the December FOMC minutes released last night. We maintain that EUR/USD should remain heavy still near term as US money markets are still pricing too little on the Fed”.
(Market News Provided by FXstreet)