EUR/USD rebounds from weekly lows, stays below 0.9800

EUR/USD fell sharply with the initial reaction to US jobs report.
Nonfarm Payrolls in the US rose by 263K in September.
The pair remains on track to end the week little changed.

Eren Sengezer FXStreet

EUR/USD managed to erase a large portion of its daily losses but lost its recovery momentum before reaching 0.9800. As of writing, the pair was down 0.1% on a daily basis at 0.9780. Following the latest price action, EUR/USD remains on track to end the week flat.

Dollar capitalizes on upbeat NFP

Earlier in the day, the data published by the US Bureau of Labor Statistics revealed that Nonfarm Payrolls rose by 263,000 in September. This print came in better than the market expectation for an increase of 250,000 and helped the dollar outperform its rivals. Additionally, the Unemployment Rate declined to 3.5% from 3.7%.

With the initial reaction, the US Dollar Index (DXY) jumped to a daily high of 112.82 and forced EUR/USD to drop to a weekly low of 0.9726. Week-end flows and profit-taking, however, seem to be limiting the dollar's gains with the DXY retreating below 112.50 toward the London fix.

Meanwhile, Wall Street's main indexes are trading deep in negative territory, making it difficult for EUR/USD to stretch higher. At the time of press, the Nasdaq Composite and the S&P 500 indexes were both losing more than 2% on the day.

Technical levels to watch for

EUR/USD

Overview
Today last price	0.9785
Today Daily Change	-0.0007
Today Daily Change %	-0.07
Today daily open	0.9792

Trends
Daily SMA20	0.9876
Daily SMA50	1.0006
Daily SMA100	1.022
Daily SMA200	1.0626

Levels
Previous Daily High	0.9926
Previous Daily Low	0.9788
Previous Weekly High	0.9854
Previous Weekly Low	0.9536
Previous Monthly High	1.0198
Previous Monthly Low	0.9536
Daily Fibonacci 38.2%	0.9841
Daily Fibonacci 61.8%	0.9874
Daily Pivot Point S1	0.9744
Daily Pivot Point S2	0.9697
Daily Pivot Point S3	0.9606
Daily Pivot Point R1	0.9883
Daily Pivot Point R2	0.9974
Daily Pivot Point R3	1.0021

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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