EUR/USD Bounced Off Two Fib Levels

The EUR/USD pair saw a significant reaction by the market on Friday when the US released mixed results on the economy. Jobs created was a negative 33, while wages growth turned out to be higher than expected - 0.5% vs 0.3%.

This divergence in the economy initially boosted the US dollar while sending Gold and Silver in the red. However, after a few hours, the trend turned and the US started the depreciation process. EUR/USD touched upon both the long-term Fibonacci and the short-term Fibonacci levels, which happen to coincide in the 1.1698 to 1.1678 range. The long term downward Fib level is the 38.2%, while the short-term upward level is 23.6%.

EUR/USD is seeing optimism from the market going as high as 1.1747, currently trading at 1.1742. The pair might continue to trade higher if the Fed does not move in December, as analysts are predicting that the rate hike is in the bag to be used before year end.

Chart: EUR/USD H4