EUR/USD outlook: Surges on much weaker than expected US NFP numbers
|EURUSD bounced sharply on Friday, with fresh strength being boosted by downbeat US labor data.
The pair was up 1.2% for the day (the biggest one-day rally since March 2016) and about to fully retrace the bear-leg of past two weeks (1.0948/1.0777) in just one day.
Shocking labor data (NFP hit the lowest since Aug 2021) pushed the dollar lower across the board, as weak labor numbers add to expectations for stronger rate cuts than initially expected.
Strong rally significantly improved technical picture as daily MA’s turned to bullish configuration and 14-d momentum emerged into positive territory, opening prospects for further advance.
Bulls pressure pivotal resistance at 1.0948 (July 17 high) violation of which to expose targets at 1.0981/1.1000 (Mar 8 peak / psychological).
However, strong rally is likely to result in profit-taking which may stall advance under 1.0948 target and keep fresh bulls on hold for consolidation.
Near term bias turned bullish on improved fundamentals, suggesting that consolidation should be limited and downticks to be contained at 1.0870/60 zone, to keep bulls intact.
Res: 1.0926; 1.0948; 1.0981; 1.1000
Sup: 1.0900; 1.0870; 1.0855; 1.0842
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.