EURUSD bounced back above the critical 1.110 level after a disappointing US Non-Farm Payroll (NFP) report. The pair was originally Trading lower before the announcement but pared its losses late in the European session. The greenback managed to score some gains from the slowdown in geopolitical tensions in the Middle East but fell back as the NFP report was released.
Markets had been quiet early in the Trading day as investors awaited the much anticipated NFP report. The report is one the most looked at economic data releases by Traders as any deviation from expected figures will likely elicit a strong response by the market. Indeed, the NFP figures failed to meet the consensus of 164,000 new jobs added and instead came in at 145,000. Unemployment rates remained steady at 3.5 percent however average hourly earnings, a leading indicator for inflation, came in below expectations. Gold, Swiss frANC and other safe-haven assets saw their prices lifted in the wake of the release of the NFP figures.
Looking at the technical picture, the EURUSD pair remains confined in a narrow Trading range between 1.110 and 1.120. The general uptrend felt since October appears to be holding. The short- and long-term moving averages are maintaining their upward slope, albeit steadily flattening. On the daily chart, the short-term average in red managed to support the price in the past three attempts to cross below. The 1.110 critical support level will remain the focus on any downside move, as current momentum is at negative bias. Looking at the upside potential, the RSI remains relatively subdued, opening the door to further increase. We could be looking at a steady pick up in momentum at the start of next week.
(Chart Source: Tradingview 10.01.2020)
Looking ahead, without any significant economic data released by the EU until next Friday, the EURUSD may continue to trade sideways in the short run. Traders will be looking at the US CPI figures on Tuesday for further guidANCe.
Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.
本文标题:GOLDWELL:Daily Market Recap - EURUSD
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