EUR/USD Soft Ahead of US NFPs



The US Senate removed a source of worries for traders, as it passed a bill to fund the government through February 18 and avert a shutdown, pending President Biden's signature [1]. Covid jitters however persist, as Omicron cases are detected in more and more places, such as New York State. [2]

Apart from Omicron-related news, today's main event is the US Jobs report that can determine the pair's next move and create increased volatility, while a series of PMIs are also due.

The last report had shown the addition of 531K jobs in October - a solid print, after a couple of disappointing results. Fed Chair Powell had noted back in November that additions of 550K-600K would be considered good progress. [3]

Eurodollar has been having a not so good week, after initial positive reaction to news around the Omicron variant. This had casted doubt over the Fed's tightening prospects, but a barrage of hawkish commentary by Fed officials - spearheaded by Mr Powell - have changed that.

On the technical front, EUR/USD has entered its third straight negative day and has broken below its EMA100, shifting near-term bias back to the downside. The broader trend remains descending and the fact that Tuesday's advance stopped at 38.2% Fibonacci of the "October High/November Low" slide adds to that. As such, the pair remains vulnerable to renewed pressure towards the 2021 lows, although it may be early for sub 1.1184 moves.

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On the other hand, the common currency exhibits some resiliency and an effort to retake mid-1.1300s would not be surprising, but strong catalyst will be required in order to challenge 1.1380-1.1410.

Past Performance: Past Performance is not an indicator of future results.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.



Retrieved 03 Dec 2021


Retrieved 03 Dec 2021


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