7 Feb 2014
EUR/USD soars after disappointing NFP
FXStreet (Córdoba) - The EUR/USD soared to fresh weekly highs immediately after the US nonfarm payrolls report release, which came well below expectations for second month in a row.
The US economy added 113,000 new jobs in January following only 75,000 new jobs in December (revised up from 74,000) while the unemployment rate fell to 6.6% from 6.7%. Jobs gain missed expectations of around 185,000.
The EUR/USD picked up momentum right before the data and extended gains toward a high of 1.3642 before pulling back slightly. At time of writing, the EUR/USD is trading at the 1.3620 zone, recording a 0.2% gain on Friday.
"I suspect we've seen the worst for the dollar as the Fed will look past this data since they feel it is heavily impacted by seasonals and weather", said Jamie Coleman, analyst at FXBeat. " Be careful on getting to beared-up on the dollar: the Fed will not shift course on the December/January employment data".
EUR/USD levels to watch
In terms of technical levels, immediate resistances are seen at 1.3642 (Feb 7 high/50-day SMA), 1.3664 (Jan 30 high) and 1.3700 (psychological level). On the other hand, supports could be found at 1.3551 (Feb 7 low), 1.3500 (psychological level) and 1.3476 (Feb 3 low).
The US economy added 113,000 new jobs in January following only 75,000 new jobs in December (revised up from 74,000) while the unemployment rate fell to 6.6% from 6.7%. Jobs gain missed expectations of around 185,000.
The EUR/USD picked up momentum right before the data and extended gains toward a high of 1.3642 before pulling back slightly. At time of writing, the EUR/USD is trading at the 1.3620 zone, recording a 0.2% gain on Friday.
"I suspect we've seen the worst for the dollar as the Fed will look past this data since they feel it is heavily impacted by seasonals and weather", said Jamie Coleman, analyst at FXBeat. " Be careful on getting to beared-up on the dollar: the Fed will not shift course on the December/January employment data".
EUR/USD levels to watch
In terms of technical levels, immediate resistances are seen at 1.3642 (Feb 7 high/50-day SMA), 1.3664 (Jan 30 high) and 1.3700 (psychological level). On the other hand, supports could be found at 1.3551 (Feb 7 low), 1.3500 (psychological level) and 1.3476 (Feb 3 low).