EUR/USD has dropped below 1.18 after US Nonfarm Payrolls showed a leap of 943,000 jobs, better than expected, and salaries are up 4% YoY. The greenback is rising across the board on expectations for a Fed tapering.
The currency pair has slipped toward 1.18, the lowest level in over a week. It has begun printing lower lows after recording lower highs earlier in the week. Moreover, momentum on the four-hour chart has turned to the downside and the pair is about to slip below the 100 Simple Moving Average.
Support awaits at the daily low of 1.1820. It is followed by the swing low of 1.1775 recorded last week and then by the July low of 1.1750. Close by, 1.1740, 1.1717 and the round 1.17 level are the next lines to watch – all played a role early in the year.
Resistance is at 1.1860, which was the peak of a recovery attempt this week. It is followed by 1.1910, the July high, and then by 1.1945 and 1.1975.
