EUR/USD fades dismal NFP-led bullish spike, back below 100-DMA

The EUR/USD pair faded a bullish spike to 1.1250 region, erasing majority of its disappointing headline NFP-led gains and is now hovering back around 100-day SMA near 1.1200-10 band.

The pair ran through fresh offers above 100-day SMA and moved back to pre-NFP weekly trading range. Although today's dismal NFP print seems to have faded expectations of an imminent Fed rate-hike decision in September, market still seemed convinced of an eventual action by the end of 2016 with the CME group's FedWatch tool still pointing to a 43% probability of such a move in December. 

Meanwhile, the overall US Dollar index has also managed to bounce-off daily lows touched in the aftermath of weaker jobs report and is contributing to some selling pressure around the major. Nevertheless, the pair might still be headed to post a weekly gain. 

Technical levels to watch

Renewed buying interest and a sustained move above 100-day SMA resistance near 1.1215 region now seems to lift the pair beyond weekly high resistance near 1.1250 towards recapturing 1.1300 round figure mark. On the flip side, decisive break back below 1.1200 handle, and a subsequent drop below 1.1180 horizontal support, might negate bullish bias and drag the pair back towards 1.1150-40 support area.