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EUR/USD ends week unable to remove bearish pressure

FXStreet (Córdoba) - EUR/USD dropped sharply on Wednesday after the FOMC statement, then recovered ground modesty and on Friday is about to end unchanged, hovering below 1.1000. The pair remains under pressure amid monetary policy divergences between what the European Central Bank (ECB) and the Federal Reserve (FED).

The euro on Friday peaked at 1.1070 and then reversed to the downside signaling that the recovery from 1.0894 could be over. On the positive side the pair managed to remain above 1.0800 and 1.0850 that are signaled as key support areas.

From a technical perspective the weekly chart still shows a bearish bias, despite ending the week practically unchanged, price holds below key MA. Two weeks ago EUR/USD found resistance at the 55-week moving average and during the current week remained below the 20 and 33-week MA.

EUR/USD ahead of a key week


In the US, the most important economic number next week will be the employment figures, particularity the NFP report. “After the lacklustre performance over the past two months, we expect the US labor market to snap back to life in October with the pace of jobs growth rebounding to a respectable 193K pace (consensus: 180k)”, wrote analysts from TD Securities.

In Europe, the final PMI readings will be release while speculations about what the ECB could do at the next meeting are likely to increase.

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