EUR/USD: another WOW Payroll rocks the market

EUR/USD Current price: 1.0715

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Having been lifeless during the first half of the day, the EUR/USD pair plummeted following the release of the US monthly employment report. According to the US Labor Statistics department the country added  271K new jobs in October, whilst the unemployment rate fell down to 5.0%, the lowest in seven years. Wages, which have been a concern rose by 0.4% against 0.2% expected. The EUR/USD dollar plummeted over 150 in less than a minute after the release, reaching a fresh 7-month low of 1.0703. The pair bounced some after the news, but met selling interest on approaches to the 1.0750/60 region, as the dollar's momentum remained strong.

Technically, the pair has reached extreme oversold readings in the short term, as the 1 hour chart shows that the RSI indicator is around 16, but maintains its bearish tone alongside with the Momentum indicator, as the price approaches the mentioned low. In the  4 hours chart, the technical reading also present a strong downward momentum, in line with a continued decline on a break below 1.0700 the immediate support. 

Support levels: 1.0700 1.0660 1.0625

Resistance levels: 1.0850 1.0895 1.0930 

GBP/USD Current price: 1.5052

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The British Pound extended its bleeding ahead of the US data release, with the GBP/USD finally declining to a fresh multi-month low of 1.5028 following much better-than-expected US employment figures. The imbalance between Central Banks has become more notable as these news are supportive of a December rate hike, one day after BOE's Governor Mark Carney offered a gloomy outlook of the UK economic future. The pair is trading at levels not seen since mid April ahead of the US opening, and the 1 hour chart shows that the price accelerated below its 20 SMA, whilst the technical indicators are partially losing their bearish strength in extreme oversold levels. In the 4 hours chart, however, a strong bearish momentum prevails, despite the indicators stand in extreme oversold readings, supporting a test of the 1.5000 level during the upcoming hours. 

Support levels: 1.5000 1.4970 1.4930

Resistance levels: 1.5080 1.5130 1.5160 

USD/JPY Current price: 122.97

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The USD/JPY pair held near the 122.00 level during the first half of the day, as investors waited for the US report which, once again, rocked the financial world. The US economy added 271K last month, and despite some minor downward revisions for August and September headlines, the news have been more than enough to convince investors that the FED will act this December. The USD/JPY pair jumped up o 123.08 after the news, but retreated from the level, as stocks did not like the news: US indexes dipped after the release and are poised to open lower limiting the upside in the pair that anyway holds near the mentioned high. The strong movement has left technical indicators in the 1 hour chart in extreme overbought levels, yet further advances are still likely, particularly of dollar's buying resumes with the US opening. In the 4 hours chart, the technical indicators head sharply lower, also in overbought territory, in line with further advances.

Support levels: 122.80 122.50 122.20 

Resistance levels: 123.20 123.60 123.40

AUD/USD Current price: 0.7058

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The Aussie enjoyed some demand during the Asian session, following a mixed RBA Minutes. The spike was short lived, as the Central Bank left doors open to ease the monetary policy further if needed. The AUD/USD pair advanced up to 0.7169, but returned to its comfort zone around 0.7150 to wait for the US employment data release. The positive surprise coming from the US jobs sector resulted in a 100 pips decline in the AUD/USD pair, with the antipodean currency being weighed also by a sharp decline in gold prices, as spot lost over $20 and fell down to 1,087.18 so far, remaining under pressure. The pair is currently trading a few pips above its daily low of 0.7048, and could extend its decline on a break below 0.7030, a strong static support level. The short term picture shows that the technical indicators stand in extreme oversold territory, but market is all about sentiment this Friday, and little about technical readings. 

Support levels: 0.7030 0.6980 0.6940

Resistance levels: 0.7070 0.7110 0.7150