The EUR/USD has lost more than 25 pips in the immediate aftermath of news that the United States created 943,000 jobs in July, well above the 870,000 expected. The pair fell to 1.1781 after the release, its lowest level in nine days.
In addition to the strong hiring figure for July, the data for June was revised upwards, reaching 938,000 compared to the 850,000 published a month ago. The unemployment rate has dropped five tenths in July, falling to 5.4% from the previous 5.9%, improving the expected 5.7%. This is the lowest level of unemployment seen by the indicator since March 2020, the start date of the pandemic in the United States.
Another important data for the market was that of the wages, which increased 4% year-on-year, above the 3.7% previously and the 3.8% expected. On a monthly basis, revenues improved by 0.4% compared to the estimated 0.3%, the June data also being revised to 0.4%.
Waiting for the market to digest the news, the cross is trading at 1.1786, losing 0.42% daily.
EUR / USD Levels
The next support in case of extending the fall is at 1.1770, floor of July 27. Further down the target is on 1.1750/51, minimum of July 21. A break in this region will lead to 1.1704, the lowest level in 2021 on March 31.
On the upside, the euro needs to recover 1.1857, yesterday’s high, in order to regain momentum towards the 1.1895 / 1.1900 region, where there are several highs in recent days. Above 1.1975, the ceiling of June 25, is the great barrier to beat.
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