The EUR/USD pair, which fluctuated in a 60-pip range and fell to a fresh session low at 1.1380 after the U.S. Bureau of Labor Statistics released its Nonfarm Payroll report, recovered back above the 1.14 handle as the greenback failed to preserve its strength. At the moment, the pair is trading at 1.1407, still down 0.14% on the day.
Today's robust nonfarm job growth failed to convince investors that the greenback was capable of a deeper correction as it wasn't a big surprise. In fact, the Federal Reserve in its semiannual Monetary Policy Report, which was released later in the session, said that the labor market conditions continued to strengthen in the first five months of this year. After rising to a session high of 95.93, the US Dollar Index started to erase its gains and is now at 95.75.
After rising more than 200 pips, the EUR/USD pair eased towards the 1.13 handle in the first half of the week, but the correction seems to have come to a halt as the pair is looking to close the second week in a row above the 1.14 mark. With no more data left in the remainder of the session, the US Dollar Index could remain as the primary driver of the price action.
Technical outlook
The RSI indicatoır on the H4 chart is gaining traction towards the 70 handle, suggesting that in the short-term a bullish momentum is building up. 1.1445 (Jun. 29 high) is the first critical resistance for the pair, and a decisive break above this level could open the door to 1.1500 (psychological level) and 1.1535 (May 5, 2016, low). On the downside, supports are located at 1.1380 (daily low), 1.1300/1.1295 (psychological level/Jun. 28 low) and 1.1230 (May 24 high).
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