EUR/USD remains on the defensive below 100-DMA despite US Consumer Sentiment improvement


  • EUR/USD declines over 0.20%, hits daily low of 1.0723 post-US Nonfarm Payrolls; trims losses to 1.0767 after upbeat UoM Consumer Sentiment.
  • US Bureau of Labor Statistics reveals a resilient job market, adding 199K employees, lowering the Unemployment Rate to 3.7%.
  • University of Michigan (UoM) Consumer Sentiment beats estimates while inflation expectations slide.

The EUR/USD fell decently more than 0.20% during the North American session after it dived to a daily low of 1.0723 courtesy of a slid US Nonfarm Payrolls report. However, after a better-than-expected University of Michigan Consumer Sentiment report, the pair has trimmed some earlier losses. The major is trading at 1.0747.

EUR/USD dropped as US Nonfarm Payrolls exceed estimates, but UoM Consumer Sentiment provides relief

A busy economic calendar in the United States (US) keeps EUR/USD traders entertained. Initially, the Bureau of Labor Statistics (BLS) revealed the economy remains resilient, as the workforce added 199K employees, exceeding the forecast of 180K. At the same time, the Unemployment Rate dropped from 3.9% to 3.7%, while the Average hourly earnings stood unchanged at 4%.

The US Dollar gathered traction on the data’s release, as the EUR/USD dropped toward its daily low before pairing those losses. The US Dollar Index (DXY), which tracks the currency’s performance against six others, registers gains of 0.40%, up at 103.07

The University of Michigan (UoM) Consumer Sentiment recently showed that American households had grown optimistic, snapping four months of declines. The index rose by 69.4, the highest since August, exceeding estimates of 62.0 while inflation expectations slid. Americans estimate inflation in twelve months at 3.1%, down from 4.5%, while for five years, is foreseen at 2.8%, less than November’s 3.2%.

Across the Atlantic, the inflation in Germany slowed to 2.3% as measured by the HICP, below forecasts prior’s month 3%. That has opened the door for a less hawkish reaction by the European Central Bank (ECB), which is expected to hold its monetary policy meeting next week.

EUR/USD Price Analysis: Technical outlook

The EUR/USD daily chart portrays the pair as neutral to downward biased, with sellers in charge, as they dragged the exchange rate below the 100-day moving average (DMA) at 1.0762. A daily close below that level can pave the way toward the 50-DMA at 1.0700. A breach of the latter will expose the November 10 swing low of 1.0655. Conversely, an uptrend resumption could happen if traders reclaim the 100-DMA, opening the door for a rally to 1.0800.

EUR/USD

Overview
Today last price 1.0752
Today Daily Change -0.0044
Today Daily Change % -0.41
Today daily open 1.0796
 
Trends
Daily SMA20 1.0866
Daily SMA50 1.07
Daily SMA100 1.0767
Daily SMA200 1.0822
 
Levels
Previous Daily High 1.0818
Previous Daily Low 1.0755
Previous Weekly High 1.1017
Previous Weekly Low 1.0829
Previous Monthly High 1.1017
Previous Monthly Low 1.0517
Daily Fibonacci 38.2% 1.0794
Daily Fibonacci 61.8% 1.0779
Daily Pivot Point S1 1.0761
Daily Pivot Point S2 1.0727
Daily Pivot Point S3 1.0699
Daily Pivot Point R1 1.0824
Daily Pivot Point R2 1.0852
Daily Pivot Point R3 1.0886

 

 

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