‘Sad’ NFP Report Fails to Boost EUR/USD Movement

thecekodok

 The release of the US NFP jobs report data appears to have fallen short of expectations for September and has pushed the USD to continue to trade weak in the past week.


Meanwhile, the 10 -year US treasury yield, which has shown a slight increase of 1.61%, has re -supported the strengthening of the USD after the release of NFP data.


Despite the NFP report being published with a mixed reading, investors remain confident that the Federal Reserve (Fed) will continue its policy tightening (tapering) measures as early as November.




Looking at the price chart of the EUR/USD pair, it seems that the price movement again showed a spike in excess of 40 pips following the weak published job growth figures on Friday.


The price increase presented was also only able to re -test the previously recorded lows around 1.15700 before moving horizontally at the end of the New York session (Friday).


Entering the market opening this week (Monday), prices were seen to rise slightly before resuming a slow pace in anticipation of injection factors to boost price movements which are seen to be geared towards US inflation data.



If the price on the EUR/USD chart manages to break the focus level of 1.15700 reached earlier, it is likely to re -test the SBR (support become resistance) zone of 1.16000.


If this time the price movement is able to pass the strongest SBR zone to be passed, the price is expected to continue the upward trend to try the SBR zone 1.17000.


But should the USD return to show more significant strengthening, the price is expected to decline back to 2021 lows around 1.15300 before testing the 1.15000 support zone.


The decline that reaches the support zone will record the latest lows for 2021 and will give a shadow for the EUR/USD price to maintain the downtrend pattern.