#EURUSD @ 0.99619 Euro recovery extends to 0.9960 and erases losses from the previous four days. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• 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.

The pair currently trades last at 0.99619.

The previous day high was 0.984 while the previous day low was 0.973. The daily 38.2% Fib levels comes at 0.9772, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9798, expected to provide support.

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.

The greenback 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.

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 USD.”

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9955 at the time of writing. Pair opened at 0.9749 and is trading with a change of 2.11 % .

The pair is trading above its 20 Daily moving average @ 0.9833, above its 50 Daily moving average @ 0.9879 , below its 100 Daily moving average @ 1.0058 and below its 200 Daily moving average @ 1.0476

The previous day high was 0.984 while the previous day low was 0.973. The daily 38.2% Fib levels comes at 0.9772, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9798, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9706, 0.9663, 0.9596
• Pivot resistance is noted at 0.9816, 0.9882, 0.9925

[/s2If]
Join Our Telegram Group