EUR/USD erases the Draghi rally on the NFP – levels
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EUR/USD erases the Draghi rally on the NFP – levels

One big event giveth, the other taketh away. A  weekly gain worth  almost 400 pips was reduced to only 100 pips, mostly due to the excellent US jobs report.

Draghi’s reluctance to express worries about bond market volatility or commit to front loading QE.  Together with some unconvincing US data, EUR/USD rallied hard. At one point it hit resistance at 1.1373, which was a peak back in November 2013.

Update: the pair continues falling to support at 1.1050.

However, as the bond and especially the bund sell-off calmed down and partially reversed, the pair dropped over 100 pips. Also  Greece’s latest actions weighed on the common currency.

Yet the biggest blow came from the US NFP. With strong job gains, a rise in wages and also a sign of a widening work force, the greenback could not be stopped. Here is an analysis of the report.

At the time of writing, EUR/USD is trading at 1.1083, exactly 100 pips above the close last week. There are still a few more hours to trade. The critical line of support is 1.1050 – this is  undoubtedly a separator of ranges.

Further support awaits at the round 1.10, followed by 1.0910. Resistance  awaits at 1.1190.

Here is how it looks on the chart:

EURUSD falling hard June 5 2015 on NFP and also Greece


In this week’s podcast, we explain why EUR rallied on Draghi, what’s next, discuss oil and gas, run through the Plus500 story and preview next week’s events.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.