- The dollar initially falls but then reverses trend after employment data.
- Nonfarm payrolls up 210,000 below the 55,000 expected.
- EUR / USD maintains a bearish tone, aims to test the weekly low.
The dollar weakened but then gained momentum after the publication of the official employment report. EUR / USD initially jumped to 1.1333, marking a new high for the day, but then it reversed the trend and fell to 1.1285, approaching the low of the Asian session at the 1.1280 area.
The initial reaction had to do with the non-farm payrolls rose 210,000, less than the 550,000 expected, being the lowest figure this year. On the positive side, the unemployment rate fell more than expected.
The numbers weakened the dollar at first but then there was a rebound in Treasury yields that boosted the greenback, especially against the yen and the main European currencies.
In case of losing 1.1280, the EUR / USD would be further weakened. The next support can be seen at 1.1255, followed by the low of the week at 1.1235. In the opposite direction of affirming over 1.1315, a test of the 1.1330 / 35 area would be expected, which is an important resistance, which if it gave way would leave the euro positioned for more rises.
Technical levels
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