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Forex »EUR / USD stabilizes around 1.1350

EUR / USD stable around 1.1350 after mixed report on US non-farm wages.

After a mixed-than-expected US employment report weakened the US dollar in the currency market, the euro rose for the second day in a row this week. During the New York session, EUR / USD was trading at 1.1346 at the time of writing.

  • The NFP report disappointed, but the unemployment rate improved.
  • Inflation in the euro zone has reached the 5% threshold, higher than estimates.
  • EUR / USD Technical Outlook: The 1 hour chart shows a bullish bias, although a break above 1.1400 increases the opportunity for a try towards the SMA-100 moving average at 1.1500.

The market mood is away from risk, as seen by European stock indices closing in the red, while US indices are losing, except for the Dow Jones Industrial (DJI) which rose 0.34%. In addition, the 10-year US Treasury yield hit a year-to-date high of around 1.801%, failing to boost the dollar in the currency market, as the US dollar index fell 0 , 56%, rising to 95.78.

US jobs data mix as eurozone inflation hits 5%

Earlier in the North American session, the Bureau of Labor Statistics (BLS) released the NFP (US Non-Farm Payrolls) report for the month of December. The numbers were weaker than expected, with the US economy adding 199,000 jobs, below the 400,000 expected by analysts. However, the unemployment rate improved from 4.1% to 3.9%, reaching a 22-month low.

The December report is unlikely to reflect the impact of the fourth wave of Covid-19, linked to the Omicron variant. The investigation took place in mid-December, just as the newly discovered strain was arriving in the United States.

Meanwhile, the economic record for the eurozone included figures on inflation. The December Flash HICP on an annual basis increased 5.0%, above the 4.7% estimated by analysts. The increase in the figure is attributed to high energy prices, up 26% from 2021. However, increases in imported food, services and goods also exceeded the European Central Bank’s 2% target.

Technical perspectives

With macroeconomic data from the euro area and the United States in the rearview mirror, the pair EUR / USD Forex stabilized around the 50-day moving average at 1.1352. Given that the Relative Strength Index (RSI) is at 53 in bullish territory, the pair could print a head start, but would face stiff resistance around December 31, 2021, with a daily high of 1.1386. A decisive breakout of this supply zone would send the price of the EUR / USD pair towards 1.1400.

EUR / USD 30 minute chart

On the other hand, the first support for EUR / USD is the January 5 high at 1.1346. A break of the latter exposes the daily pivot R1 at 1.1325, immediately followed by a solid support area where ALL hourly Simple Moving Averages (SMAs) converge with the daily pivot point around the 1.1308-16 region.

By Christian Borjón Valencia, FXStreet

Christian Borjon, Forex News Editor at FX Street, has been an experienced Forex and CFD commodity trader for six years. He worked at CITI Banamex (CITI branch in Mexico) as a Forex Market Maker for a year and a half. Christian has a degree in Business Administration from UA de C, Mexico. Like many other traders, he started taking a course and learning the hard way. Christian discovered it later and became obsessed with fundamental analysis and macroeconomics, as well as its influence on financial markets.

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The opinions expressed here are solely those of the author and do not necessarily reflect the views of Forex Quebec. Every investment and trade move carries risk, you need to do your own research when making a decision.

Disclaimer: The information and opinions in this report are provided for general information only and do not constitute an offer or a solicitation to buy or sell currency or CFD contracts. Although the information contained in this document has been taken from sources believed to be reliable, the author does not guarantee its accuracy or completeness, and assumes no responsibility for direct, indirect or consequential damages that may result from the fact that someone trusts such information. . information.

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