EUR/USD Current price: 1.0640
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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
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