- EUR/USD accelerates gains and approaches 1.0645 again.
- US Non-Farm Payrolls surprised to the upside (again) in February.
- The unemployment rate rose to 3.6%.
He EUR/USD rebounds to fresh three-day highs near 1.0645, following the release of another strong US jobs report on Friday.
EUR/USD strengthens after mixed US jobs report.
The EUR/USD pair came under upward pressure after the publication of the non-farm payrollswhich showed that the US economy added 311,000 jobs during the month of February, exceeding initial estimates of an increase of 205,000 jobs. In addition, the data for January was revised slightly downwards to 504,000 (from 517,000).
The unemployment rate rose to 3.6% and mean hourly earnings, a proxy for inflation through wages, rose 0.2% month-on-month and 4.6% from a year earlier. Additionally, the Participation Rate increased slightly to 62.5% (from 62.4%).
What to watch out for around the EUR
EUR/USD finds some strength and advances beyond the 1.0600 barrier following the US NFP release for February, while extending the optimism seen in the second half of the week.
Meanwhile, the price action around the Euro should continue to closely follow the dynamics of the dollar, as well as the possible next moves of the ECB after the bank has already anticipated another 50 basis point rate hike in the March date.
Returning to the euro zone, the probable continuation of the normalization process by the ECB beyond the March meeting could revive fears of recession.
Technical levels
For now, the pair gains 0.60% at 1.0643. A break from the resistance 1.0694 (monthly maximum of March 7) would have as objective 1.0712 (55-day SMA), en route to 1.0804 (weekly high from February 14).
On the way down, the initial support stands at 1.0524 (monthly low March 8), followed by 1.0481 (minimum of January 6) and, finally, 1.0323 (200-day SMA).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
