The euro has opened the new trading week with a strong bid tone against the US dollar, with price testing key breakout resistance.
December 10, ADS Securities – The Euro gets a further boost after a disappointment in the US’s NFP numbers for November. Friday’s NFP report presented an increase of 155k in the US’s Non farm payrolls, missing expectations of 200k.
While wage growth also missed expectation of 0.3% growth by printing at 0.2%. The Single currency is mainly boosted due to a weakening dollar following the weak NFP report as presented above.
Additionally, the US Dollar weakened as investors continued to price in a slowdown in the Fed’s rate hike plan. In terms of Euro specific fundamentals, sentiment surrounding Italy’s controversial budget plan remains positive as Italian Prime Minister promised to alter his government’s plan based on EU demands.
EURUSD Technical Analysis
Following the break above the 200-period moving average, the pair broke up the 1.1426 resistance exposing the next key resistance level at 1.1494. The pair's bias is currently bullish since prices are trending above all the three major moving averages. Investors should expect a strong upsurge in prices when the 13-period moving average (blue) crosses above the 200-period moving average (purple)
Support: 1.1352 / 1.1310
Resistance: 1.1426 / 1.1494
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