Saturday, November 7, 2015

EUR/USD: Another terrible week for the euro

FXStreet (Córdoba) - Like two weeks ago, EUR/USD dropped sharply in the market falling more than 250 pips. A strong US dollar pushed the pair sharply to the downside.

The pair finished the week trading around 1.0735/55, after finding support at 1.0700, down 2.30% from the level it had seven days ago as it continues the decline that started after approaching 1.1500 three weeks ago. It posted the lowest weekly close since April 22.

EUR/USD: Another hit from the NFP

Today’s US jobs numbers pushed the pair sharply to the downside, but even before the report the euro was already falling against the US dollar and moving with a bearish bias.

“The pair seems to have set the tone for the rest of the year, or at least, until the December FED's meeting, as all of the ongoing dollar's strength is based on speculation that the US Central Bank will raise its rates then”, said Valeria Bednarik, Chief analyst at FXStreet.

From a technical perspective, the trend remains bearish. Bednarik noted that advances up to the 1.0840 region, the base of these last months' range, will be seen as selling opportunities. “Given the extreme oversold readings present also in the shorter term, the pair can extend above this region, and rally up to 1.0960, where another bout of selling waits, and still unable to harm, the dominant bearish trend”, she concluded.
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