EUR/USD retreats after NFP but on track for weekly gain

Despite a below expectations NFP report, the greenback managed to recover some ground, dragging EUR/USD to daily lows in the 1.0535 area during the New York session.

Despite the US economy created less jobs than expected (156K vs 178K of consensus) the details were encouraging. November and October’s figures were revised by a combined +19,000 while  hourly pay increased 2.9% from a year earlier, marking the fastest yearly increase since mid-2009.

The dollar initially moved down and EUR/USD peaked at before turning down to a low of 1.0534. The pair however, found support and bounced to currently trade at 1.0550, 0.54% below its opening price. However, EUR/USD remains on track for a weekly gain to start the 2017, the third in a row.

EUR/USD levels to consider

As for technical levels, EUR/USD could face next resistances at 1.0616 (Jan 6 high), 1.0662 (50-day SMA) and 1.0795 (Dec 5 high). On the flip side, support levels are seen at 1.0490 (21-day SMA), 1.0389 (Jan 4 low) and 1.0339 (14-year low, Jan 3). Gb