The pair's kneejerk reaction was lower on Friday's US NFPs, which beat estimates, after two back-to-back disappointments. The US Economy added 531K payrolls in October and Unemployment Rate dropped to 4.6%.
After setting fresh 2021 lows though (1.1512), it quickly recovered, to end the day with profits in a largely mixed week. At the start of the new one, it trades with positive undertone trying to surpass its EMA100, in a move that resembles the price action after its last 2021 low in October.
Successful effort will provide the opportunity for a rise towards the November highs (1.1617), but the Euro does not inspire confidence yet, for a greater advance past its downward trend line from September (in the mid-1.1600s).
So far however it remains below the EMA100 and in any case, its recent visits above it, have been short-lived. The broader downward momentum remains intact at this stage and there is still significant risk for fresh lows (1.1512), but a convincing move below 1.1492 may need a catalyst.
The economic calendar is rather light today, but Mr Powell is on tap at 15:30 GMT.
Past Performance: Past Performance is not an indicator of future results.
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.