EUR/USD: wages´ miss undermining the greenback
|EUR/USD Current price: 1.1385
The EUR/USD pair extends its advance, nearing the yearly high of 1.1445 after the release of the US June employment report, as a strong headline was clearly offset by poor wages. The world's largest economy created 222,000 new jobs, largely surpassing expectations of 179K, while previous' month reading was revised up to 152K from an initial estimate of 138K. Nevertheless the unemployment rate ticked up to 4.4%, with the participation rate up to 62.8%, while wages were once again a big miss, barely advancing 0.2% in the month, below expectations of 0.3%, and up yearly basis by 2.5%, also missing market's forecast of 2.6%.
The news may not be bad, but clearly not enough to back a dollar's rally, not even in the short term. The EUR/USD pair is bullish short term, although the major resistance around 1.1460 weighs on investors' mood. Large stops should be around this last and would need to be triggered to confirm additional gains ahead, towards 1.1490 and 1.1525, the next short term resistance. Technical readings in the 4 hours chart support the bullish case, with technical indicators resuming their advances within positive territory, the 20 SMA gaining upward strength below the current level, and the price bouncing sharply from an initial knee-jerk down to the 1.1380 region, the immediate support.
Support levels: 1.1380 1.1335 1.1290
Resistance levels: 1.1460 1.1490 1.1525
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