EUR/USD is located in a neutral zone. On the chart., we can see an upside signal, while a new low suggests selling. The pair has changed little after the disappointing NFP report.
The economic indicator came in at 661K, below 900K estimate and far below 1489K in the previous reporting period. The Average Hourly Earnings increased only by 0.1%, less versus 0.5% expected. The greenback was saved from a sharp depreciation by the Unemployment Rate which decreased unexpectedly from 8.4% to 7.9%. Economists expected a drop only to 8.2%.
EUR/USD is trapped between 1.1694 and 1.1753 levels. An upside breakout signals an increase at least till the 1.18 psychological level. On the other hand, a downside breakout could lead to a drop towards 1.1611 former low.
The US ISM Non-Farm Manufacturing PMI report will be unveiled later today. Better than expected data could help the USD to increase, while an expansion slowdown could send EUR/USD towards new highs.
- EUR/USD Trading Tips
We will have a great buying opportunity if EUR/USD jumps and stabilizes above 1.18 psychological level. This scenario validates a significant upwards movement. 1.2 could be used as a short term target.
A deeper drop will be confirmed by a new low, drop below 1.1611 level. The 1.1495 is seen as a downside target.
