EUR/USD: wages disappoint big, dollar down but not much

Valeria Bednarik FXStreet

EUR/USD Current price: 1.0640

View Live Chart for the EUR/USD

After a long waiting, the US Nonfarm Payroll is out, with mixed figures putting the dollar under selling pressure as an initial reaction. The world's largest economy added 178,000 jobs in November, while the unemployment rate fell to 4.6%, the lowest since 2007, helped by a decrease in the participation rate to 62.7%. Previous month headline suffered a downward revision, to 142K from previous estimate of 161K. Wages were a huge disappointment, with Average hourly earnings down by 0.1% in the month, against previous 0.4% advance and the 0.2% gain expected. Year-on-year, AHE came in at 2.5%, retreating from 2.8% in the previous month.

The EUR/USD pair spiked up to 1.0617 with the news, recovering the ground lost early Europe but short of the daily high set at 1.0689. Mixed news, bad news considering that lower wages are a drag for inflation, and the FED could use it as an excuse to remain on hold this December. Anyway, and from a technical point of view, the pair remains below its 20 SMA in the hourly chart, while indicators remain within bearish territory, suggesting the pair may ease further, particularly on a break below 1.0620, the daily low. To the upside, the key resistance comes at 1.0700, the 23.6% retracement of the latest daily slump, with little hopes for a steeper recovery as long as the prices remains below it.

Support levels: 1.0620 1.0580 1.0550

Resistance levels: 1.0660 1.0700 1.0745

USD/JPY Current price: 113.90

View Live Chart for the USD/JPY

Holding below 114.00 after mixed Payrolls. The USD/JPY pair fell down to 113.47, a fresh 2-day low following the release of mixed US employment figures, with the pair retreating further from the multi-month high set this week at 114.82. Selling interest around 114.00 is keeping the upside limited, although the bearish momentum remains limited in the pair, according to the 1 hour chart, as the price is holding above a bullish 100 SMA, while technical indicators lack directional strength within neutral territory. In the 4 hours chart, the pair remains mostly neutral with the price well above a bullish 100 SMA, the RSI holding around 59, and the Momentum holding within positive territory with no clear directional strength. A recovery above 114.10 could see the pair resuming its advance and retest the mentioned high.

Support levels: 113.45 113.10 112.70

Resistance levels: 114.10 114.45 114.90

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.