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EUR/USD Fails to Recover 1.0200 Level and Looks Vulnerable as Dollar Holds Firm

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EUR/USD Fails to Recover 1.0200 Level and Looks Vulnerable as Dollar Holds Firm
  • The dollar maintains important portfolio values ​​after the NFP.
  • Employment reports boost dollar and yields.
  • EUR/USD is headed for a modest weekly loss.

EUR/USD bottomed at 1.0140 on Friday and then bounced back. The recovery of the euro was not strong enough to recover the 1.0200. At the end of the week, the pair looks vulnerable due to the strengthening of the US dollar.

The July employment report showed that the US economy added 528,000 jobs, much more than expected. US yields jumped after the report boosting the dollar overall.

After the NFPs, the key report next week will be the US inflation numbers. The CPI for July will be published on Wednesday and a monthly increase of 0.2% is expected. The IPP will be published on Thursday. The numbers will be key to Fed rate expectations. The jobs report left the door open for aggressive tightening.

Another week in the range

Despite the FOMC and NFPs, EUR/USD continues to move sideways, as it has since mid-July. The Euro continues to be rejected from around the 1.0280 area, while at the same time still finding support around 1.0100.

“The weekly chart shows that the long-term bearish stance is still intact. Technical indicators remain negative, Momentum advancing but RSI extending its consolidation around 31. At the same time, the 20 SMA heads lower. south almost vertically, about 350 points above the current level but more than 800 points below the longest, a sign of bear dominance,” explains Valeria Bednarik, Chief Analyst at FXStreet.

According to Bednarik, a break below 1.0105 will open the door for a retest of parity. To the upside, he argues that “EUR/USD would need to accelerate through 1.0280 to shed negative stance and extend its recovery towards 1.0360 first and on track to 1.0440 after”.

Technical levels

EUR/USD

Overview
last price today 1.0163
daily change today -0.0083
Today’s daily variation in % -0.81
Daily opening today 1.0246
Trends
daily SMA20 1.0161
daily SMA50 1.0387
daily SMA100 1.0571
daily SMA200 1.0936
levels
Previous daily high 1.0254
Previous Daily Low 1.0154
Previous Weekly High 1.0258
Previous Weekly Low 1.0097
Previous Monthly High 1.0486
Previous Monthly Low 0.9952
Daily Fibonacci of 38.2%. 1.0216
Daily Fibonacci of 61.8% 1.0192
Daily Pivot Point S1 1.0182
Daily Pivot Point S2 1.0119
Daily Pivot Point S3 1.0083
Daily Pivot Point R1 1.0281
Daily Pivot Point R2 1.0317
Daily Pivot Point R3 1.0381

Source: Fx Street

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