- The dollar extends the fall in the market after the US employment report.
- Labor market data came out better than expected.
- EURUSD rises more than 50 pips and hits two-day highs.
EURUSD is trading at two-day highs in the 0.9860/65 area, after better-than-expected US labor market figures came out. The dollar is falling throughout the market.
Weak dollar despite data
The US economy created 261,000 jobs in October, exceeding the 200,000 expected. This initially pushed the dollar higher, which after a few minutes reversed the trend and resumed downward runs, albeit at a faster rate.
EURUSD fell to 0.9750 immediately after the figures were released. But then it changed direction and spiked as high as 0.9870, a two-day high. The same thing happened with the price of shares on Wall Street and Treasury bonds, which initially fell but then reversed direction.
What if it keeps going up?
EURUSD recovered almost 150 pips from Thursday’s low, back above the 20-day moving average and is just shy of the 55-day moving average at 0.9888. If it manages to stay above 0.9850, the very short-term bias will continue in favor of the euro. The next resistances are seen at 0.9925 and 0.9960.
In weekly terms, the pair is still in negative territory, but moving away from the lows, which is a positive sign for the bulls. The key level on the weekly chart can be seen at 1.0045, where the 20 moving average is.
Technical levels
Source: Fx Street
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