The EURUSD pair had a choppy day on Friday to close the week but it has to be said that the pair closed stronger for the day and the week which should give a lot of hope for the bulls in the week ahead. The euro initially dipped during the first half of the day but managed to recover late in the day and this helped to push the euro through some important technical levels which should now act as a strong support going forward.
EURUSD Looks Bullish for the Week
The euro was placed on the backfoot, as it had been for the rest of the week, by some strength in the dollar which had managed to hold steady for most of the week. The incoming data from the US had been pretty strong during this period and this helped to keep the bid under the dollar. It was further buoyed by the NFP data which came in much stronger than expected and it continued the trend of strong data from the US. This more or less confirmed the rate hike from the Fed in December and also improved the prospects of quicker rate hikes from them next year.
There is still some uncertainty on how the new Fed Chief Powell would be and whether he would disrupt some of the bullishness that we have been seeing in the Fed over the last few months and this is probably the only thing that is holding back the dollar at this point of time. The euro is also buoyed by the reports that say that a Brexit deal is getting nearer and could be announced and agreed any day and this is good both for the euro as as well as the pound.
Looking ahead to the rest of the day, we do not have any major news from the US or the Eurozone for the day but we have a host of data and events from the central banks during the course of the week as everyone seems to be a hurry to finish off their duties for the year. It is going to be a packed week of events where volatility would be high.
This article was originally posted on FX Empire