$EUR/USD: 1.2000 comes at sight

What a week we had. The $EUR/USD has accelerated its decline right before the ECB’s announcement on monetary economic policies, surged to a weekly high of 1.2455 right after the European Central Bank delayed QE, to finally resume its slide to fresh year lows on an outstandingly positive US NFP reading.

President Mario Draghi maintained the economic policy unchanged, with rates at record lows, delaying the decision on QE to the first quarter of 2015 by indicating that the ECB needs more time to assess the impact of latest measures. At the same time, he slashed growth and inflation expectations for this year, 2015 and 2016, which at the end, continues to reflect the economic imbalances between both regions. 

Sellers took again the drivers sit early Friday, pushing the pair down to 1.2350 ahead of US data, that resulted above any forecast: the American economy added 312K jobs, October was revised up by 30K, wages grew and unemployment rate remained steady at 5.8%: could have not been better, or a clearer sign of a soon to come rate hike in the US.

The $EUR/USD points to close the week below the 1.2300 level, first time since August 2012 and with the weekly chart maintaining the bearish bias. RSI has failed to regain 30 and heads back lower, whilst 20 SMA heads strongly south above current levels, now around 1.2780, way too far to even be something to consider next week. In the daily chart 20 SMA caps the upside maintaining its bullish slope now around critical 1.2440/50 static resistance area, while indicators head lower well into negative territory. 

There are several historical daily and weekly lows in the 1.2240/70 price zone, so it will take some acceleration through it to confirm a continued selloff in the pair, first towards the mid 1.21 yet eyeing 1.2000 as the main bearish target. The only case for a recovery comes by the hand of profit taking ahead of the year close, with some momentum above mentioned 1.2240/50 region favoring a continuation towards 1.2520/60 area, probable top for next week in the unlikely case of a  dollar slide.