The euro fell 1% on Thursday on a darkening euro zone outlook, while global stock markets rallied as the European Central Bank chief pledged to beef up or prolong the bank's economic stimulus if necessary.
The Nov. 6-7 EURUSD reverse was not a ‘piercing line’, but close. The Nov. 10 session was not a bullish ‘inverted hammer’, but close. And Friday’s price action did not form a bullish hammer, but it was close.
Despite Friday’s non farm payroll-inspired losses, U.S. stocks are still looking strong from both the fundamental and technical points of view. The latest U.S. jobs report has shown that the labor market is continuing to improve at a solid pace, which bodes well for the economy as a whole.
The euro fell to a two-year low as European Central Bank President Mario Draghi deepened his commitment to a stimulus program and signaled policy makers are ready to implement additional measures if needed.