The NFP was released on Friday, showing that the US added more jobs than expected in November; rushing the EUR to a 5 week high against the USD. The pair reached a high of 1.3721 and closed at 1.3705. The positive date on Friday confirmed that the unemployment rate fell to a five year low of 7% and the economy added 203K jobs in November; 23K more than investors expected. This data, and the fact that a report on Thursday showed that the US had an annual growth rate of 3.6%, increases the possibility that the FED will reduce the 85B asset purchase.
In the upcoming week we are expected to have the following market affecting data:
On Monday, Germany will release its industrial production and trade balance reports.
On Thursday, investors will be closely watching ECB President Draghi as he speaks in the European Parliament. US retail sales data will be released as well.
In the upcoming week the EUR/USD is expected to be impacted higher on a fundamental basis. The data mentioned above will highly affect the pair.
Main Technical Analysis:
On a technical note, according to the 4 hour chart the EUR/USD pair is likely to continue towards a resistance level of 1.3745. If the pair breaks above this level, there is a possibility it will continue up to a 1.3800 level as well. If the pair does not break this resistance level, it is likely to find support at about 1.3620.
Resistance and Support Levels:
Resistance 1: 1.3745
Resistance 2: 1.3800
Support 1: 1.3520
Support 2: 1.3455
This weekly Forex forecast was provided by TradeHits.