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#1 06-01-2020 10:38:18

Admin & Trader
From: Paris - France
Registered: 21-12-2009
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EUR/USD: 200-day moving average remains at key pivot point

EUR/USD: 200-day moving average remains at key pivot point; key thresholds to monitor to confirm a rebound or pursuit of decline

Despite the rise in risk aversion following new developments in the Iran-USD crisis, the EUR/USD pair has remained fairly stable in the forex since the opening of the market last night, currently at around 1.1160. The pair is currently trading at the 1.1190 level.

Remember that last week, and especially the first two trading days of the year on Thursday and Friday, were difficult for the EUR/USD. The pair dropped to a low of 1.1125 at the end of last week, after peaking above 1.12 on Thursday.

The USD's strengthening against a wave of risk aversion was the main factor behind the decline, but the pair managed to regain some ground before the close, closing Friday at 1.1155. The pair's strength was also due to the fact that the USD's strength in the face of a wave of risk aversion was the main factor behind the pair's decline.

Today, traders will be watching December's European and US Final Services PMI's, but the main event of the week will be expected on Friday, with the NFP report. The economists' consensus forecast calls for job creation to drop to 160k from 266k in the previous month. The unemployment rate is expected to remain stable at 3.5%.

Technical analysis

From a visual point of view, it is worth noting that after briefly testing the 200-day moving average on Friday, the pair finished the week above this key indicator, and remains above it this morning, which allows us to consider a rebound.

If this materialises, the psychological threshold of 1.12 will be the first potential target to watch on the upside.

If, however, the EUR/USD breaks below the 200-day moving average, the psychological threshold of 1.11 and the 100-day moving average at 1.1060 will be the first technical support level to consider.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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