EUR/USD: wages´ miss undermining the greenback

Valeria Bednarik FXStreet

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

View Live Chart for the EUR/USD

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 holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.