The currency pair plunged last week on the eve of the US labor market data. US Unemployment Rate was better than expected and hit 8.4% level against 9.8% expected by economists.

The ECB meeting will take place this week. We do not expect any serious changes in their monetary policy but this event may increase market volatility. 

EUR/USD has tested 1.1802 last week and ended the week with a hammer candlestick pattern. We expect EUR/USD to target 1.1950 if this pattern starts working.