EUR/USD attacks 1.19 after terrible US data

Traders bought the EURUSD pair on Friday, and it was seen 0.3% stronger during the US session, trying to settle above the important 1.19 level.

The dollar slid after the non-farm payrolls numbers as the BLS reported that only 235,000 jobs were added in August, far below the 725,000 expected and below even the most pessimistic forecast. The number was well below the last month's 1,053,000 but was the weakest print since January.

Relative to expectations, the August print was ugly and represented a 4-sigma miss.

On the other hand, the unemployment rate improved to 5.2% from 5.4% in July, while average hourly wages rose from 4.1% year-over-year last month to 4.3%, beating the 3.9% consensus.

From other news, the ISM services sector dropped notably in August, from 64.1 to 61.7, suggesting the economic rebound is losing steam, and inflation pressures continue to mount, implying possible stagflation soon. 

Weaker economic data might push the Fed into delaying the tapering process, driving the USD lower.

The EURUSD pair rose to the key resistance of 1.19, and if it closes above it on a daily basis, the medium-term trend might change to bullish, targeting the next critical zone of 1.20, where the 200-day moving average is.