- EUR/USD finds resistance below 1.1540 and turns lower.
- US dollar recovers momentum across the board after short-lived weakness following NFP.
The EUR/USD pair moved off daily highs and drop toward 1.1500, erasing daily gains. As of writing, the pair was trading at 1.1505/10, around the same level it closed yesterday and almost 50 pips below daily highs. The intraday momentum turned bearish in line with the dominant trend.
After the release of the US employment report EUR/USD rose to 1.1535/40. After the beginning of the US session failed to break above and pulled back also amid a retreat of EUR/GBP.
US data released today showed that the US economy remains solid. The unemployment rate fell to its lowest level in 48 years at 3.7%. Total non-farm payroll employment increased by 134K September below the 185K expected but the data was offset by positive revisions and probably influenced by hurricane Florence. The GDPNow model estimate for real GDP growth stood at 4.1% in the third quarter of 2018, reported Atlanta’s Fed on Friday.
The data points to more rate hikes from the Fed so it remains supportive of the US dollar and higher yields. The greenback weakened after NFP but then recovered all the lost ground, expect versus the yen. The Japanese currency remains among the top performer supported by another slide equity prices in Wall Street.
EUR/USD Levels to watch
The retreat from the daily high at 1.1538 found support above 1.1500. The mentioned area could be seen as the immediate support, followed by the daily low at 1.1480. Below that level, the key barrier at 1.1450/60 would be exposed. To the upside, resistance levels are seen at 1.1535/40 (daily high) followed by 1.1560 and 1.1590/95 (Oct 3 high).
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