KY: Dollar Supported as Traders Await Friday’s Job Report
The EUR/USD witnessed a massive sell-off in the overnight trading session. The plunge in the euro was bought on mostly due to the resumption of the US dollar rally as traders look forward to the Federal Reserve meeting in December with expectations that the Fed might go ahead with its rate hike for the first time in close to 7 years. It is important to note that the euro has come under steep selling pressure ever since the ECB chief Mario Draghi spoke about the European Central bank wanting to increase the size of its quantitative easing program, seen as a negative for the Euro. Most analysts are turning their attention to the US jobs report to be released on Friday, which would give a clear indication about the strength of the US labour market and offer a strong clue as to the Fed’s next move.
When looking at the charts for the EUR/USD, the currency pair has been forming lower lows and lower highs indicative of the fact that bears are in total control. The EUR/USD currently trades below all important hourly moving averages considered to be a bearish signal.
