EUR / USD rises to session highs at 1.1580 as US payrolls disappoint

• The euro bounces from the lows of 1.1535 to reach session highs near 1.1580.
• The dollar loses momentum as US employment data disappoints expectations.
• EUR / USD: Above crucial support at 1.1495 – SocGen.

The euro is attempting to rebound from 14-month lows at 1.1535 to hit session highs at 1.1580, helped by a weaker-than-expected US non-farm payroll report. The pair EUR/USDHowever, it remains on the defensive, having depreciated around 0.5% in a three-day decline.

USD declines as US job growth disappoints expectations

The dollar fell against its major peers on Friday, weighed down by a weaker-than-expected rise in US private employment. According to data released by the Labor Department, nonfarm payrolls increased by 194,000 in September, well below market expectations of nearly 500,000 new jobs.

In addition, the unemployment rate fell to 4.8%, from 5.2% in August, while the average hourly wage increased 0.6% monthly and 4.6% year-on-year.

The EUR / USD pair, however, remains little changed, close to recent lows, as the employment report is unlikely to deter the Federal Reserve from beginning to reverse its monetary stimulus program as early as November. . Fed Chairman Jerome Powell confirmed last month that a “decent” jobs report in September would be enough to start reducing bond purchases.

EUR / USD: support at 1.1495 crucial for potential recovery – SocGen

The currency analysis team observes that the pair is approaching an important support zone, at 1.1495, considered crucial for a possible bounce towards 1.1665: “EUR / USD is probing the weekly Ichimoku cloud and is close to the March peak of 2020 at 1.1495. Defending this may result in a bounce, however, 1.1665 could limit (…) Below 1.1495, the next support could be at 1.1450 and projections of 1.1380 ”.

Technical levels