EUR/USD back above 1.1100 as the NFP dust settles

By FXStreet FXStreet (Córdoba) – The dollar managed to benefit from a lackluster nonfarm payrolls reading and dragged EUR/USD to a low of 1.1089, but managed to hold above previous day’s lows when a dovish Draghi sent the pair stumbling.

US nonfarm payrolls came in at 173K in August down from 245K the previous month. Despite the headline came in below expectations of 220K, the job gain was still seen as strong. Meanwhile, the unemployment rate edged down to 5.1% from 5.3% in July and against the 5.2% expected.

At time of writing, EUR/USD is trading at 1.1120, virtually unchanged on the day.

EUR/USD technical perspective

“In the 4 hours chart, the technical readings also support the downside, as the post report spike stalled below a bearish 20 SMA, whilst the technical indicators consolidate flat near oversold levels”, said Valeria Bednarik, chief analyst at FXStreet. “Should the price break below 1.1080, the bearish momentum will accelerate, down to the 1.1010 region”.

Bednarik sees next support levels at 1.1080, 1.1050 and 1.1010, while she places resistances at 1.1160, 1.1200 and 1.1245.
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Source:: FX Street