- The dollar recovers after an initial drop after the employment report.
- Nonfarm payrolls up 428,000, more than the 391,000 consensus.
- EUR/USD held back by 1.0600 loses steam and erases gains.
The EUR/USD lost steam after the US jobs report. It had initially rallied closer to 1.0600 but then reversed direction and dropped below 1.0550. Treasury bond yields ended up reacting upwards, giving more support to the dollar, which is also favored by the negative tone that persists on Wall Street.
Employment data was mostly in line with expectations. The US economy created 428,000 jobs in April, just above the 391,000 expected. The unemployment rate remained at 3.6%, against a drop to 3.5% consensus.
The dollar initially reacted with a drop, but then strengthened and advanced in the market, although without setting new daily highs. Now the focus turns to what will be the speeches of various members of the FOMC.
Stopped by 1.0600
The EUR/USD is erasing gains as the dollar improves. Previously the pair failed to break above 1.0600 which has become a key short-term barrier. Above it appears as the next resistance 1.0630 that protects the weekly peak of 1.0641.
To the downside, immediate support can be found at 1.0530 followed by 1.0505 and then the band between 1.0480 and the 2022 low (28 Apr) at 1.0470.
Technical levels
Source: Fx Street
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