- EUR / USD adds losses to Thursday’s well below 1.2300.
- The rebound of the dollar continues to weigh on the pair.
- The US Non-Farm Payrolls are the next big thing on the agenda.
The bias offered is still good and solid around the single currency, dragging the EUR / USD to new lows in the 1.2215 / 10 band at the end of the week.
EUR / USD bounces from multi-day lows
The EUR / USD pair was down for the second session in a row on Friday, although it has managed to regain some composure after making multi-day lows near the key support at the 1.2200 figure.
The recent recovery in US yields has been helping the improvement around the dollar, which in turn put the euro under additional pressure and forced riskier assets to lose some of the gains seen in previous sessions.
On the euro agenda, German industrial production expanded 0.9% monthly in November, while the trade surplus fell slightly to 16.4 billion euros in the same period. The euro zone unemployment rate fell to 8.3% in November from the previous 8.4%, improving the estimated 8.5%.
In the US data space, the crucial monthly report on the labor market is expected. The consensus expects the US economy to have added just 71,000 jobs in December and the unemployment rate to have advanced to 6.8% (from 6.7%). Wholesale inventories will also be released and FOMC member Richard Clarida (permanent voter, moderate) will appear.
EUR / USD Levels
At the moment, the pair is losing 0.24% at 1.2240 and faces immediate contention at 1.2129 (weekly low of December 21) seconded by 1.2058 (weekly low of December 9) and finally 1.2032 (23.6% Fibo of the rally 2017-2018).
On the other hand, a breakout of 1.2349 (2021 high marked on January 6) would target resistance 1.2413 (monthly high on April 17, 2018) en route to 1.2476 (monthly high on March 27, 2018).
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