EUR/USD: upside exhausting, or legs to 1.2200??

Currently, EUR/USD is trading at 1.1784, up 0.73% on the day, having posted a daily high at 1.1794 and low at 1.1771.

EUR underperformed t the end of last week's session, falling from 1.1880 to1.1732 when the US jobs data surprised to the upside.  US: Non-farm payrolls rose 209k in July and stronger than the expected. "That’s a second consecutive read above recent trend (3mth avg: +195k, 12m avg: +180k). Gains were widespread across sectors, the separate household survey matching the establishment survey, showing a strong +345k gain," noted analysts at Westpac.

Dollar Index technical tone on the verge of improving - BBH

However, analysts at Brown Brothers Harriman argued that the euro's advance was getting tired even as it recorded the two-year high in the middle of the week near $1.1910.  "It consolidated, and some profit-taking was seen ahead of the weekend when it became clear the momentum was flagging. The euro can slip back into the $1.1680-$1.1725 band without doing much damage. Many leveraged accounts and momentum players have their sights set on $1.20-$1.22."

EUR/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that from a technical point of view,  readings in the daily chart support a corrective movement, as technical indicators have turned sharply lower from extreme overbought levels, but remain far above their mid-lines, whilst the price remains above all of its moving averages that maintain their upward slopes:

"The 20 DMA is the closest, currently around 1.1660. In the 4 hours chart, the price broke below its 20 SMA, which is not flat in the 1.1860 region, while technical indicators pared their declines, but remain near, oversold readings. The key support for this Monday is 1.1715, 2015 high and the level to break to confirm a steeper decline over the next few sessions," Bednarik noted.