The day will finally be revealed to the downside for the EUR/USD pair, with a low of 1.1604, after a peak at 1.1697.
Recall that the pair first of all briefly enjoyed the report NFP to be very disappointing, which has highlighted 261k job creations for the month of October, compared to 210k expected, and average hourly wages stable, compared to an increase of +0.2% expected.
However, after having briefly dropped in the face of these numbers, the Dollar has quickly recouped its losses, because even if this report the NFP has actually revealed to be disappointing, it is probably not enough to question the prospect of a new rise in Fed funds rate by the end of the year.
The traders have probably put in perspective the figures published today, because of the catch-up phenomenon after the figures exceptionally bad of the previous month, linked to the hurricanes. Thus, it will be necessary to wait for the next NFP in order to certify a return to normal, since the above numbers were scrambled by the impacts of hurricanes, and the figures published today have been blurred by the phenomena of catch-up.
From a graphical point of view, after being approached of 1.17, the pair was finally fixed, to enjoy briefly the support of 1.1640, before that the ISM manufacturing index US higher expectations comes in to boost the Dollar and revive the decline the decline of EUR/USD, until the next support zone of the 1.1600-10, with a low of 1.1604 this afternoon.
If this support breaks, the next goals are to 1.1575, 1.1550 and 1.15. Has the upside, a return above 1.1650 would call into question the prospects of a decline in the short term, but it would take a return back above 1.17 to be able to think of taken to buying positions.
Chart EUR/USD H1
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This chart has been realized with the trading platform TradingStation 2 provided by FXCM France.