EUR/USD leaves behind Thursday’s negative price action.The greenback slips back into the negative ground despite higher yields.EMU flash CPI, US Nonfarm Payrolls next of note in the calendar.The single currency regains the smile and lifts EUR/USD back above the key 1.1300 barrier on Friday.EUR/USD now looks to domestic data, NFP.EUR/USD extends the erratic performance so far this week although always around the key 1.1300 neighbourhood and ahead of the critical release of US Nonfarm Payrolls for the month of December.
EUR/USD met quite decent contention in the 1.1270 zone so far in the first week of the new year. In the meantime, price action around spot continues to track the performance of the greenback as well as the policy divergence between the ECB vs. the Federal Reserve and the response to the persistent elevated inflation on both sides of the Atlantic. On another front, the unabated progress of the coronavirus pandemic remains as the exclusive factor to look at when it comes to the economic growth prospects and investors’ morale.
EUR/USD levels to watch.So far, spot is up 0.17% at 1.1313 and faces the next up barrier at 1.1386 (monthly high November 30) followed by 1.1464 (weekly high Nov.15) and finally 1.1520 (200-week SMA). On the other hand, a break below 1.1272 (weekly low Jan.4) would target 1.1221 (weekly low Dec.15) en route to 1.1186 (2021 low Nov.24).