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EUR/USD – Euro Remains Supported at 1.1350 Vs US Dollar

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Aayush Jindal

Key Highlights

  • The Euro traded higher this past week and settled above the 1.1350 resistance versus the US Dollar.
  • There is a connecting bullish trend line with support at 1.1340 forming on the 4-hours chart of EUR/USD.
  • The US nonfarm payrolls for June 2017 released this past Friday posted a solid increase of 222K.
  • Today in the Euro Zone, the German Trade Balance for May 2017 will be released, which is expected to post a trade surplus of more than €18.0B (MoM).

EURUSD Technical Analysis

The Euro enjoyed decent gains this past week and even tested the 1.1450 resistance zone against the US Dollar. The US nonfarm payrolls dented the bullish bias in EUR/USD, but it remains supported above 1.1350-1.1340.EURUSD Technical Analysis Euro US DollarOn the downside, there is a connecting bullish trend line with support at 1.1340 forming on the 4-hours chart.Furthermore, the 50% Fib retracement level of the last wave from the 1.1312 low to 1.1439 high is at 1.1376, which might also provide support.Below 1.1376, the trend line and swing low at 1.1350 might stop losses in EUR/USD. On the upside, the most important hurdle for buyers is at 1.1440. A close above it would open the doors for a break towards 1.1500 or even 1.1540 in the near term.

US Nonfarm Payrolls

This past Friday, there was a major release in the US, as the nonfarm payrolls for June 2017 was reported. The market was positioned for an increase of 179K, compared with the last 138K.The actual result was a lot better, as there was an increase of 222K jobs in June 2017. The last reading was also revised up from 138K to 152K.US Nonfarm Payrolls June 2017However, the US unemployment rate rose from 4.3% to 4.4%, whereas the market was not expecting any change in June 2017. The report added that:
Employment rose in health care, social assistance, financial activities, and mining. Employment growth has averaged 180,000 per month thus far this year, in line with the average monthly gain of 187,000 in 2016.
Overall, the result was excellent, and stopped the rise in EUR/USD above 1.1420. The pair ended the week below 1.1420, but remains supported on the downside above 1.1350.
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