EURUSD Approaching Resistance After NFP Disappointment

April 3, 2015

EURUSD Approaching Resistance After NFP Disappointment

The EURUSD rallied after the combination of a disappointing NFP release, and downward back revisions in the figures. The pair is approaching a resistance area created by a combination of technical factors. The resistance levels of 1.1052 and 1.1098 coincide with 50 day MA and the upper Bollinger Bands.  This resistance has been tested twice and after the latest test EURUSD made a higher low. This suggests the pair will be trying to move higher from here. The next important daily resistance levels are closer to the 1.1460 which could well come into play now that the NFP release was such a disappointment.

The analysts expected an increase of 246k jobs but we got only 126k.  The 126k U.S. March payroll rise with 69k in prior downward revisions and a 0.2% drop in hours-worked, combined with big goods-sector declines for payrolls and hours-worked lowered production estimates for March. 

Price action at the resistance levels is going to be interesting to follow. If the pair corrects lower from it I expect the correction to be rather subdued. The surprisingly weak jobs figure means that now the Fed doves have further evidence of softening economy and a better case to postpone the rate hike. This is seen in the markets across the board as the USD is being sold against other currencies across the board.

Janne Muta
Chief Market Analyst

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.



Publication source
HotForex information  HotForex reviews

October 26, 2016
Revealed a larger than expected consumer confidence drop to 98.6
Asian stock markets are mostly down, with Japan a notable outperforming (closing up and indices holding on to modest gains as the Yen continued to decline against the Dollar...
October 26, 2016
AUD gains on better than expected CPI numbers
The Australian Bureau of Statistics released the consumer price index data for the third quarter. Official records showed that CPI advanced 1.3% on the year in the third quarter of 2016...
October 25, 2016
US flash Markit PMI jumped 1.7 points to 53.2 in October
Asian stock markets are mostly down, as the positive confidence indicators out of Europe and the U.S. yesterday were overshadowed by weak GDP numbers from South Korea, which weighed on most markets. Topix and Nikkei outperformed, with a weaker Yen underpinning exporters...

HYCM Rating
Fort Financial Services Rating
HotForex Rating
FBS Rating
FxPro Rating
FXTM Rating

TopOption Rating
Beeoptions Rating
OptionsXO Rating
OptionFair Rating
24option Rating
IQ Option Rating