EURUSD – Can Euro Recover Vs US Dollar Above 1.0650?

Key Highlights

• The Euro failed to hold gains this past week against the US Dollar and moved below 1.0650.
• There is a crucial resistance near 1.0850, which held the upside move in EURUSD.
• This past week’s nonfarm payrolls release in the US for March 2017 by the US Department of Labor posted 98K, which was less than the forecast of 180K.
• The US unemployment rate decreased from the last reading of 4.7% to 4.5% in March 2017.

EURUSD Technical Analysis

The Euro maintained a downside bias and moved below 1.0650 against the US Dollar. It looks like EURUSD might continue to move down and could even test 1.0520.The recent downside was initiated from the 1.09028 high. The stated level coincides with a major resistance. The same level prevented upsides on several occasions near 1.0880. The EURUSD pair declined and moved below the 23.6% Fib retracement level of the last wave from the 1.0340 low to 1.0902 high.Looking at the daily chart, the pair even attempted a move below a major bullish trend line at 1.0620. A daily close below the 1.0600 level and 100-day SMA may spark more downsides in the near term.

US Nonfarm Payrolls

This past week on Friday, there was a major release in the US, as the nonfarm payrolls for March 2017 was be released by the US Department of Labor. The market was positioned for the number of new jobs created to register 180K, compared with the previous 235K.However, the real outcome was a lot on the lower side, as the US nonfarm payrolls increased by 98K in March 2017. However, the best part was the US unemployment rate, which posted a decline from 4.7% to 4.5%. The report published highlighted:

The number of persons unemployed less than 5 weeks declined by 232,000 to 2.3 million. The number of long-term unemployed (those jobless for 27 weeks or more) was little changed over the month at 1.7 million and accounted for 23.3 percent of the unemployed. Over the past 12 months, the number of long-term unemployed was down by 526,000.

Overall, the result was disappointing, as the number of jobs created in March were more than 100K less the previous month. The US Dollar was initially seen trading lower, but later it recovered. The EURUSD kept trading lower, and closed the week below 1.0600.If there is a correction in EURUSD this week, we need to see if the pair can overcome selling pressure above 1.0650 and 1.0680 or not.