Search ForexCrunch

The effects of a better than expected NFP number coming in at +114,000 for September has pushed the EUR through the 1.3050 resistance area.   Add to the NFP news the unexpected drop in the US unemployment rate to 7.8% and you have positive momentum for risk appetite.

Trend and momentum indicators are pointing higher for the EUR.   It looks as if there could be a test of the important resistance level at 1.3172 sometime early next week.   This would be a logical conclusion if the EUR closes the day above the 1.3050 level, so that is what traders will focus on for the remainder of today.   Support for the EUR remains in the 1.2875-1.2900 area.

EUR USD hourly 5 day October 5 2012
EUR USD hourly 5 day – Click image to enlarge

In other currency news, the USD/CAD continues to look offered as once again the risk on trades are looking attractive to traders.   USD/CAD broke the .9780 support line and ran down to .9735 on stop loss selling before reverting back above the .9750 level.   A close below .9780 keeps the pressure for a move lower in the next few days. An excellent Canadian jobs report helped.

I have included additional charts for the EUR and CAD below.

EUR/USD daily 6 month

EUR USD Daily 6 Month October 5 2012
EUR USD Daily 6 Month – Click image to enlarge

USD/CAD daily 6 month

USD CAD daily 6 month October 5 2012
USD CAD daily 6 month – Click image to enlarge

USD/CAD hourly 5 day

USD CAD Hourly 5 day October 5 2012
USD CAD Hourly 5 day – Click image to enlarge