EUR/USD bounds higher post-NFP, taps into 1.0600

EUR/USD catches a firm lift post-US NFP release, climbing 1.12% from the day's bottom.
Broad-market flows have gone firmly risk-on following a bumper NFP reading for the USD.
Euro traders will be looking ahead to Monday's investor confidence indicator for October.

Joshua Gibson FXStreet

The EUR/USD climbed 117 pips from Friday's bottom bids of 1.0482 to tap into the 1.0600 handle as Friday's US Non-Farm Payrolls (NFP) sends investors piling out of the US Dollar and back into risk assets to close out the trading week. The EUR/USD is now trading back slightly, testing the waters around 1.0580 as investors settle into the Friday close.

US Nonfarm Payrolls soar by 336,000 in September vs. 170,000 forecast

The Euro (EUR) is now back into green territory for the trading week, but only just, after hitting a weekly low near 1.0448. The US added 336K jobs last month, a clean beat of the forecast 170K and a step above the previous print of 176K (revised upwards to 227K).

The economic calendar is looking notably thin for the opening half of next week, with the EU's Sentix Investor Confidence reading for October, which last printed at -21.5.

Next Wednesday will bring US Producer Price Index (PPI) figures, as well as the Federal Reserve's latest meeting minutes.

EUR/USD technical outlook

The EUR/USD is trading just south of 1.0600 after climbing from Friday's bottom, turning the trading day green and erasing the week's downside losses as Euro bulls look to keep the pair trading in positive territory into the closing bell.

The Euro is set to close bullish against the US Dollar for the third straight trading day, but the pair remains steeply in bearish territory with daily candlesticks still trading far below the 200-day Simple Moving Average (SMA) near 1.0825.

A descending trendline from July's peak of 1.1275 remains the target to beat for bidders, and the 50-day SMA will pose an additional technical challenge as it confirms a bearish crossover of the longer moving average.

Technical indicators are moving broadly out of oversold territory, and bidders could use the reversal signals to gain a foothold into higher territory. The Relative Strength Index (RSI) and Moving Average Convergence-Divergence (MACD) indicators are both rolling over from oversold to bidding phases, giving the EUR/USD room to run if investor confidence manages to hold steady.

EUR/USD hourly chart

EUR/USD daily chart

EUR/USD technical levels

EUR/USD

Overview
Today last price	1.0579
Today Daily Change	0.0033
Today Daily Change %	0.31
Today daily open	1.0546

Trends
Daily SMA20	1.0619
Daily SMA50	1.0779
Daily SMA100	1.0845
Daily SMA200	1.0826

Levels
Previous Daily High	1.0552
Previous Daily Low	1.05
Previous Weekly High	1.0656
Previous Weekly Low	1.0488
Previous Monthly High	1.0882
Previous Monthly Low	1.0488
Daily Fibonacci 38.2%	1.0532
Daily Fibonacci 61.8%	1.052
Daily Pivot Point S1	1.0513
Daily Pivot Point S2	1.0481
Daily Pivot Point S3	1.0461
Daily Pivot Point R1	1.0565
Daily Pivot Point R2	1.0584
Daily Pivot Point R3	1.0617

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.