EUR/USD fails again to break above 1.1250 and retreats toward 1.1200
- Euro remains sideways above 1.1200 against US dollar.
- Greenback strengthens during American session, DXY heads for the highest close in a month.
The EUR/USD pair rose to the 1.1250 area after the released of the US employment report. It peaked at 1.1248 and pulled back. Recently printed a fresh daily low at 1.1209 and as of writing, trades at 1.1215/20, around the same level it closed last week.
The move to the downside, back below 1.1225 took placed amid a stronger greenback that gained momentum despite lower US yields. The DXY rose to 97.46, the highest level since Tuesday and it heads for the second-highest close of the year.
US President Trump cheered the NFP and mentioned that the Federal Reserve should cut rates and stop quantitative tightening. Next week, the FOMC minutes from the latest meeting will be released. In the Eurozone, the ECB will meet. “We expect relatively little out of next week's ECB meeting after TLTROs were announced last month. Details on these are likely to be held back until June, but we'll watch for any hints during the press conference, alongside how Draghi answers the inevitable questions on deposit rate tiering. See our preview”, said TDS analysts.
Technical outlook
The EUR/USD completed on Friday another day moving between 1.1200 and 1.1250. According to Valeria Bednarik, Chief Analyst at FXStreet the daily chart shows price below all of its moving averages, with the 20 SMA losing downward strength at around 1.1280, “but the longer ones heading firmly south above this last.” She adds that Technical indicators attempted a recovery but failed within negative levels and resumed their declines, keeping the risk skewed to the downside.
“The key levels remain 1.1175 the yearly low being the immediate support, ahead of 1.1120 and 1.1060. To the upside, the mentioned 1.1280 and 1.1330 levels are the ones to watch, with a break above the latest one favoring a corrective movement up to 1.1400”, added Bednarik.