EUR/USD Remains Under Pressure Ahead Non-Farm Payrolls Report

Euro slipped more than 3% over the last year and hit a fresh 13-year low at 1.0352 against the U.S. dollar while it recorded the third negative month in a row. On a short-term basis, the main focus this week will be the December’s non-farm payrolls report, the first one after Federal Reserve raise rates. Also, during last week the euro traded higher versus almost all the G10 peers except against the Swiss Franc and the Swedish Krona.


The common currency broke to the downside the multi-month consolidation area in December, with upper boundary the 1.0620 resistance level and lower boundary the 1.0500 support barrier. The EUR/USD pair surged above 1.0600 in thin liquidity conditions last week of while the new year starts with the investors still wondering if the currency pair will hit parity. If the U.S. dollar continues to strengthen then the euro will continue to weaken. The single currency rebounded on the 50-daily SMA and now is developing slightly above the 1.0500 strong psychological level. A break below the latter level it will open the way for the 1.0352 support barrier. On the daily timeframe, technical indicators are still moving within the negative territory while the RSI indicator is flattening near its neutral area. The MACD oscillator crossed its trigger line to the upside and is approaching its mid-level.


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