EUR/USD double bottoms after one-two punch

EUR/USD had some time to recover as euro-zone QE was not announced by Draghi  yesterday. However, the institution continues mulling the options and this weighs on the single currency. The absolutely excellent US jobs report helps the greenback.

The result is a nice double bottom around 1.2280. Both instances have been a touch and go, with a significant bounce afterwards. However, the increased pressure means that this line could be pressured once again. Here is how it looks on the chart:

Reports coming out of Germany (FAZ) say that the ECB is working on a QE program that would exceed 1 trillion euros.  Obviously, there was no agreement. The news broke out just before the NFP and weren’t fully digested at the initial time of publication.

The US reported a gain of 321K jobs, the best in over two years and far beyond expectations. Also wages are finally on the move and the “real unemployment rate” continues ticking down.

This closely watched report already set a blow for the pair and it reached the lower bound seen at the first minute of the ECB press conference.

The pair than bounced back and it is struggling with the round number of 1.23. Can it breach the double bottom or is the failure to go lower a sign of a bigger bounce?

More:  ECB Post-Mortem: We remain short EUR– BNPP

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