EUR/USD Current price: 1.1299
View Live Chart for the EUR/USD
The dollar was firmer ahead of the US jobs report, but plummeted afterwards, with a much worse-than-expected Nonfarm Payroll report. The US economy added just 142,000 new jobs in September, far below the 203,000 expected and the weakest in over a year. The unemployment rate remained steady at 5.1%, but wages were also a huge disappointment, flat at 0.0%. Markets are dumping their dollar holdings, with the US 10y note higher, and yields down below 2.0% in over a month.
The EUR/USD pair advanced up to 1.1315, and consolidates nearby early in the US session, having approached a daily descendant trend line coming from 1.1713, August high. The 1 hour chart shows that the pair has advanced over 150 pips, accelerating through its moving averages, and with the technical indicators losing their strength in extreme overbought levels. Nevertheless, the pair holds to its highs, suggesting further gains ahead, particularly on a break above the 1.1330 price zone, the immediate short term resistance. In the 4 hours chart, the technical indicators present a strong upward momentum in positive territory, supporting the shorter term view.
Support levels: 1.1270 1.1240 1.1200
Resistance levels: 1.1335 1.1370 1.1410
GBP/USD Current price: 1.5198
View Live Chart for the GPB/USD
The GBP/USD pair surged up to 1.5236, reaching the 23.6% retracement of its latest weekly decline before stalling. Despite the ongoing dollar weakness, the pair is struggling to hold above the 1.5200 level, and the 1 hour chart shows that the technical indicators are retreating from overbought levels, whilst the price is well above a mild bullish 20 SMA. In the 4 hours chart, the technical picture is mild positive, with the price above its 20 SMA and the technical indicators aiming higher around their mid-lines, far from confirming an upward continuation as long as the mentioned high holds.
Support levels: 1.5160 1.5125 1.5090
Resistance levels: 1.5235 1.5280 1.5320
USD/JPY Current price: 118.95
View Live Chart for the USD/JPY
Breaking through 119.00. The worse-than-expected US employment data has sent the pair down to a low of 118.87, level not seen since early September. Trading nearby at the beginning of the US session, the pair is aiming to test the lowest of its latest range at 118.56, with a daily close below it opening doors for a continued decline towards the 116.00 region, the low set in August. Short term, the 1 hour chart shows that the technical indicators are losing their bearish strength in extreme oversold readings, whilst the price has plunged below its 100 and 200 SMAs, maintaining however, the risk towards the downside. In the 4 hours chart, the technical indicators turned south from their mid-lines, and stand at their lowest in over two weeks, supporting the shorter term view. The immediate resistance is now the 38.2% retracement of its latest weekly decline at 119.35, and as long as below it, the downward potential will remain intact, with scope to extend its bearish movement down to the 118.00 level later on in the day.
Support levels: 118.55 118.30 117.90
Resistance levels: 119.35 119.70 120.10
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