FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet noted that the release of US Nonfarm Payrolls last Friday, failed to motivate EUR traders, and the EUR/USD pair closed the week around 1.0880, the pre-news level and the 38.2% retracement of the 1.1494/1.0505 decline.
Key Quotes:
“According to official data released on Friday, the US economy managed to add 211,000 new jobs in November, surpassing expectations of a 200K advance, while the unemployment rate held steady at 5%. Market was neither able to react to Draghi’s words, as the ECB president spoke in New York, remarking that the ECB will continue to work to achieve their inflation target, but its concerns about persistently low core inflation.
Overall, investors were unable to shrug of the shock produced by the European Central Bank on Thursday, by offering a soft extension of its QE after all of the two previous months jawboning. Dollar sell-off at a time when the currency was long-term overbought against its European rival, resulted in a technical correction, given that the pair trades at the 38.2% retracement of its latest decline, yet the strength of the move and the fact that the greenback was unable to gain on a good Payroll, suggest pair may continue rallying this week. In the 4 hours chart, the pair is well above its moving averages, while the technical indicators have resumed their advances near overbought readings after a limited corrective move, supporting and advance towards the 1.1000 figure, with a break above it supporting an upward continuation towards the 1.1120 level.”
(Market News Provided by FXstreet)