EUR/USD (current price: 1.0527)
The pair continued to trade close to the 1.05 level after the volatile week. The U.S. Non-Farm Payrolls Report came in slightly below expectations at 156,000, but the previous reading was revised upwards. Hourly Earnings grew by more than expected in the same period, pushing the Dollar higher against its most important peers. German Retail Sales were worse than expected in December, as well as the Eurozone reading, also weighing on the common currency. German Factory Orders were in line with expectations, but the pair still finished the week on a negative note following the mixed releases.
Our assessment: EUR/USD remains just above its recent 14-year lows below the 1.0350 level. The long-term picture is still negative, with strong resistance ahead at 1.0685.
