In the first trading day of this week EUR/USD supported 1.1120 and moved to 1.1175 levels for a while but could not continue its rise. It was sailing around 1.1159 while this article was prepared. Below 1.1170 – 1.1200, bearish pressure would be more powerful on EURUSD.
The EUR/USD whipsawed following a weaker than expected headline U.S. employment report that showed a weaker than expected headline number. The exchange rate broke through trend line support on Thursday, and tested the lows on Friday at 1.1080. Resistance is seen near the 20-day moving average at 1.12.
The U.S. jobs report tracked expectations on net, despite the kneejerk focus on the lean 173k August payroll gain. There was 44k in upward revisions that left the August level of payrolls in line with estimates. Hourly earnings beat estimates with a 0.3% climb. The 196k civilian employment rise was robust, while a 41k labor force drop allowed a plunge in the jobless rate to a 5.11% new cycle-low.
As we see on monthly chart, eurusd is near to its support level for monthly period. Although below 1.1170 short term trend continues, supporting bottom level of its monthly channel is expected soon. Reversal from 1.09 or 1.04 in middle term should be expected.
For the short term beeing SELL positions mey be a good idea with keeping eyes on support levels.