EUR/USD is trading firmly above the 1.1550 level as this week draws to a close, with the pair benefiting directly from broad dollar weakness following a disappointing US jobs report.
The pair pushed toward the 1.1550-1.1560 range on Friday, extending gains from earlier in the week when December Euro futures were already being flagged as showing a potential buying setup around the 1.1620 area. The move higher tracks the broader dollar index decline to a seven-week low, rather than reflecting any specific standalone eurozone catalyst.
With the US Dollar Index under pressure and rate-cut expectations building following the weak payroll data, EUR/USD’s near-term path likely continues to hinge more on incoming US economic data than on eurozone-specific developments. Traders watching the pair will want to keep an eye on whether the 1.1550 area holds as support on any dollar rebound attempts, or whether continued dollar softness pushes the pair toward testing higher resistance levels.
A reversal in US data surprises, similar to what happened earlier in the week when stronger claims and productivity figures briefly lifted the dollar, remains the clearest near-term risk to continued euro strength.
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