EUR/USD: EUR refuses to give up

Posted By FxNewInfo.com Posted On 10 January 2016

EUR/USD Current Price: 1.0918

View Live Chart for the EUR/USD

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The common currency refused to give up against the greenback on Friday, despite December's US Nonfarm payrolls report beat expectations by announcing the creation of 292K new jobs against expectations of 200K. Additionally, the headline reading for November was revised upward by 41K, while the unemployment rate remained steady at 5%. Wages were the big miss, as average hourly earnings fell 0.04%, far from market's expectations of a 0.2% growth.  The dollar spiked after the release, ending the day with gains against most of its major rivals, exception made by the EUR and the JPY, both favored during the first  week of the month, by risk sentiment triggered by China. Chinese stocks plummeting and authorities halting trading twice during this past week, have spurred risk aversion, leading to a strong demand of safe havens and funding currencies.

Anyway, the EUR/USD pair recovered from a daily low set at 1.0802 following the announcement, and closed the week a handful of pips below the high set at 1.0939, trapped between Fibonacci levels. Technically the daily chart shows that the price has fallen down to the 61.8% retracement of the December rally, where strong buying interest pushed it back higher, although sellers keep surging around the 23.6% of the same rally around 1.0925, the immediate resistance. In the same chart, the technical readings present quite a neutral stance as the technical indicators remain stuck around their mid-lines. Shorter term, and according to the 4 hours chart, bulls retain control, as the technical indicators are grinding higher above their mid-lines, whist the price has recovered above a now bullish 20 SMA. The immediate support for this Monday comes at 1.0845, the 38.2% retracement of the same rally.  

Support levels: 1.0845 1.0800 1.0750 

Resistance levels: 1.0925 1.0960 1.1000

 

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