EUR/USD rises further above 1.0960 to one-week highs as USD Slides


  • The US dollar weakens across the board after the US official jobs report.
  • EUR/USD gains momentum after breaking above 1.0930.
  • The pair is heading for its highest weekly close since May.

The EUR/USD pair gained momentum amid a weaker US Dollar following the release of US employment data. After breaking above 1.0930, the Euro accelerated and climbed to the 1.0960 area, reaching the highest level in a week.

US Dollar down after NFP

Nonfarm Payrolls (NFP) in the US rose by 209,000 in June, below the market expectation of 225,000. May's increase of 339,000 was revised lower to 306,000. The unemployment rate edged lower to 3.6%. Despite the miss in job creation, the numbers continue to show a strong labor market.

Market continues to see a rate hike at the next FOMC meeting but expectations of a second hike before year-end have eased. Such repricing has kept US yields limited and, as a result, the US Dollar is falling by 0.75%, having the worst day in a week. US stocks are trading mixed, while commodity prices are up.

The EUR/USD is hovering above 1.0960, at the highest since June 27, with bullish momentum intact. It is holding onto weekly gains, above the 20-week Simple Moving Average. If the pair holds above 1.0960, attention would turn to the 1.1000 area and then the June high at 1.1012. On the contrary, a decline under 1.0930 would weaken the short-term outlook for the Euro.

Next week 

No key reports are due from the Eurozone next week. The most relevant economic numbers will come from the US with the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday. Inflation figures will be crucial ahead of the July 25-26 FOMC meeting.

Technical levels 
 

EUR/USD

Overview
Today last price 1.0963
Today Daily Change 0.0075
Today Daily Change % 0.69
Today daily open 1.0888
 
Trends
Daily SMA20 1.0889
Daily SMA50 1.086
Daily SMA100 1.0826
Daily SMA200 1.0615
 
Levels
Previous Daily High 1.0901
Previous Daily Low 1.0834
Previous Weekly High 1.0977
Previous Weekly Low 1.0835
Previous Monthly High 1.1012
Previous Monthly Low 1.0662
Daily Fibonacci 38.2% 1.0875
Daily Fibonacci 61.8% 1.0859
Daily Pivot Point S1 1.0847
Daily Pivot Point S2 1.0807
Daily Pivot Point S3 1.078
Daily Pivot Point R1 1.0914
Daily Pivot Point R2 1.0941
Daily Pivot Point R3 1.0981

 

 

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