EUR/USD testing 1.0900 on a corrective slide ahead of NFP

By FXStreet FXStreet (Mumbai) – The EUR bulls appear to face exhaustion in Asia, after witnessing almost 450 pips rally in the previous session after the ECB easing measures fell short of market expectations.

EUR/USD trades below 1.0930

Currently, the EUR/USD pair trades -0.27% lower at 1.10910, testing session lows reached at 1.0900 last minutes. The major stalled its 4 figure rally and turned lower this session on the back of a minor-correction, with the USD bulls fighting back lost ground somewhat ahead of the big event – NFP due later today.

Markets experienced a massive EUR shorts squeeze on Thursday after the ECB QE measures turned out less aggressive than expected, boosting the common currency across the board. ECB opted not to increase the amount of monthly purchases, but extended the QE program until at least March 2017. While the central bank cut the deposit rate from -0.2% to -0.3%, as widely expected.

Meanwhile, as dust settles over ECB aftermath, markets now await the non-farm payrolls data for another session of high volatility, with the Fed Dec 16 meeting now in focus.

EUR/USD Technical Levels

The pair tests 1.09 handle, with the immediate support seen at 1.0850/42 (round number/ Nov 4 Low). Selling pressure …read more

Source:: FX Street