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  • US dollar about to end the week on a soft tone after NFP.
  • EUR/USD recovers 1.20 and more, next resistance at 1.2050.

The EUR/USD rose further during the American session and printed a fresh daily high at 1.2033. It is holding onto most of its daily gains, on the back of a weaker US dollar across the board. The greenback was correcting lower and extended losses after the release of the US employment report.

NFP hits dollar

The EUR/USD received another boost to recover from the 1.1950 bottom after the NFP. Payrolls rose by 49K in January, below expectations. Also, the previous months were revised lower. The unemployment rate dropped from 6.7% to 6.3%.

Equity prices in Wall Street are rising, with the Dow Jones up 0.25% and the Nasdaq 0.18%. The DXY reversed sharply from monthly highs above 91.50 and fell toward 91.00, trimming weekly gains.

Despite rising on Friday, EUR/USD is about to end the week lower posting the lowest close since November. The slide found support at the 20-week moving average and bounced to the upside. The move off weekly lows could suggest some consolidation ahead before another leg lower or a recovery. 

With just a few economic reports due next week, market sentiment will likely be the key with market participants looking at US yields, coronavirus data and fiscal stimulus negotiations.

Technical levels