EUR/USD recovers on Friday, still heads for lowest weekly close since June 2017

• Euro rebounds further against US dollar during Friday’s American session. 
• EUR/USD supported by a correction of the greenback and a rally in EUR/GBP. 

The EUR/USD pair printed fresh daily highs on Friday at 1.1245 and near the end of the session was hovering around 1.1240, posting a daily gain of 50 pips. 

The euro rebounded on Friday from the 20-month lows it reached on Thursday following the ECB meeting. Analysts at Danske Bank explained that in light of the very soft message, it “nosedived from just above the 1.13 mark to below 1.12. Near term, we expect EUR/USD to remain below the 1.12 mark. With the risk of pockets of USD strength from renewed pricing of Fed hikes and a trade deal that will not provide much imminent support, this opens the possibility for a EUR/USD move towards 1.10 on a 3M horizon.”

On Friday, data showed that the US economy added  20K significantly below the 180K expected, the unemployment rate fell to 3.8% and hourly wages rose 0.4% in February posting the biggest annual gain in nearly a decade. The greenback weakened after the report but then the pressure eased. 

EUR/USD moved all day with a bullish bias. The euro also received support from the rally in EUR/GBP that climbed to 0.8650 ahead of a crucial week for the Brexit drama. 

The recovery on Friday trimmed Thursday’s losses, still EUR/USD is about to end the week more than a hundred pips below the level it had a week ago. The move higher was on the back of a higher US dollar boosted by risk aversion. 

Technical Levels