The US jobs report, aka the Non-Farm Payrolls, provided a bit for everyone. On one hand, the jobs that were gained came out at 227K, better than predicted. On the other hand, wages came out at a big disappointment with 2.5% y/y, including a miss for January and downward revisions.
EUR/USD chopped around quite erratically, but when looking at the wider chart, we can see that it perfectly respected the technical levels (as shown in this video for example).
The pair tested the 1.0710 line on the downside. This was a low point during 2016 and was also respected in 2017. On the topside, we reached a high of 1.0774, just under the 1.0780 line which served as a separator of ranges.
Here is how it looks on the EUR/UDS chart. Further resistance is at 1.0830. Low support awaits at 1.0650.
What’s next? All in all, the disappointment in wages should win over. Why? The bigger rise in headline jobs growth was anticipated by a similarly blockbuster ADP report, which showed a gain of 246K private sector jobs. In addition, the increase in positions during January was dampened by a drop of 39K in previous months, according to the revisions.
More: EUR/USD: Recovers in January On Trump Reflation Doubts; What’s Next? – BTMU
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