EUR/USD Rebounds from Multi-Week Lows, Trading Above 1.0750
EUR/USD faced significant downward pressure, dropping to its weakest level in three weeks below 1.0750 on Friday following a stronger-than-expected Non-Farm Payrolls (NFP) report. However, weekend flows helped the currency pair recover some daily losses. The Relative Strength Index (RSI) on the 4-hour chart is higher but remains below 50, indicating a lack of recovery momentum. The pair needs a decisive move above 1.0820 (Simple Moving Average 200-day, Fibonacci retracement level of the latest uptrend) to establish it as support and extend its recovery towards 1.0860 (static level, 50-day SMA) and 1.0900 (Fibonacci retracement level of 23.6%, 100-day SMA).
On the flip side, 1.0760 (Fibonacci retracement level of 50%, 200-day SMA) is considered a crucial support level before 1.0700 (psychological level, Fibonacci retracement level of 61.8%).
EUR/USD benefited from the broad-based weakness of the US Dollar (USD) on Thursday, registering a daily increase for the first time since November 28. On Friday morning, the pair stabilized just below 1.0800 as market participants were cautious ahead of the US NFP report.
Positive changes in risk sentiment made it challenging for the USD to find demand in the latter part of Thursday, pushing EUR/USD higher.
The US Non-Farm Payrolls (NFP) report for November is expected to increase by 180,000. A figure above 200,000 could force investors to reassess the timing of potential policy changes by the Federal Reserve (Fed) and boost the USD initially. On the other hand, a disappointing figure below 150,000 could make it difficult for the USD to stay resilient against its counterparts heading into the weekend.
Meanwhile, annual wage inflation is expected to decrease to 4% from 4.1% in October, and the unemployment rate is predicted to remain unchanged at 3.9%.
The US economic calendar will also feature the preliminary December Consumer Sentiment Survey from the University of Michigan. However, investors may overlook this report while scrutinizing labor market data.
On the flip side, 1.0760 (Fibonacci retracement level of 50%, 200-day SMA) is considered a crucial support level before 1.0700 (psychological level, Fibonacci retracement level of 61.8%).
EUR/USD benefited from the broad-based weakness of the US Dollar (USD) on Thursday, registering a daily increase for the first time since November 28. On Friday morning, the pair stabilized just below 1.0800 as market participants were cautious ahead of the US NFP report.
Positive changes in risk sentiment made it challenging for the USD to find demand in the latter part of Thursday, pushing EUR/USD higher.
The US Non-Farm Payrolls (NFP) report for November is expected to increase by 180,000. A figure above 200,000 could force investors to reassess the timing of potential policy changes by the Federal Reserve (Fed) and boost the USD initially. On the other hand, a disappointing figure below 150,000 could make it difficult for the USD to stay resilient against its counterparts heading into the weekend.
Meanwhile, annual wage inflation is expected to decrease to 4% from 4.1% in October, and the unemployment rate is predicted to remain unchanged at 3.9%.
The US economic calendar will also feature the preliminary December Consumer Sentiment Survey from the University of Michigan. However, investors may overlook this report while scrutinizing labor market data.
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