EUR/USD refreshes session lows near 1.1825 on impressive NFP print
|Having repeatedly failed to move back above the 1.1900 handle, the EUR/USD pair finally broke on the downside and refreshed session lows near the 1.1830-25 region post the US jobs data.
The pair fell over 40-pips after the headline NFP print showed that the economy added impressive 209K new jobs during July. The reading below previous month's 222K but should have easily surpassed even the most optimistic estimates. Meanwhile, the unemployment rate ticked lower to 4.3% during the reported month, while averaged hourly earnings were up 0.3% m-o-m, holding the yearly rate steady at 2.5%.
Separately, the US trade balance came in to show a deficit of $43.6 billion for June, down from $46.5 billion deficit recorded in the previous month and better-than $45.0 billion expected. Today's upbeat data provided some respite for the US Dollar bulls and dragged the pair sharply lower.
It, however, remains to be seen if the greenback is able to build on the recovery move from 15-month lows amid growing concerns over the US President Donald Trump’s ability to deliver on his promised pro-growth economic reforms and the scandal on his alleged links with Russia, and skepticism over prospects of additional Fed rate hike action by the end of this year.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet writes: "A break above 1.1909, the yearly high, the next resistance comes at 1.1950, followed by the critical 1.2000 threshold, where the market can rush to take profits ahead of the weekend. To the downside, 1.1830 is the immediate support, with a more relevant one comes at 1.1785. Below this last, the corrective movement can extend down to 1.1715, August 2015 high, without affecting the dominant bullish trend."
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