January 10, 2022

EUR/USD Picks 70 Pips Following Reaction To US NFP Report

 Deviated from market expectations to see a strengthening US dollar over the weekend when the US NFP jobs data report for December 2021 published last Friday posted a disappointing reading.

Earlier, the ADP data report measuring the U.S. private employment sector published on Wednesday showed higher soaring figures, making investors see it as a positive indication of the NFP report, but the opposite happened.

The price movement on the EUR/USD chart last Friday saw a daily jump of around 70 pips following the market's reaction to the disappointing NFP report pushing the US dollar to depreciate at the close of last week's trading.

Prices are still moving in the same range for up to 6 weeks awaiting the next development of the Federal Reserve’s (Fed) move in continuing their monetary policy.

Back signaling for a bullish trend on the EUR/USD chart, the price has moved above the Moving Average 50 (MA50) support level on the 1 -hour time frame with the US dollar expected to weaken early in the week ahead of this week’s US inflation focus data.

The opening of the market in the Asian session today (Monday) saw an early decline in prices, but it is likely that the situation is only temporary with expectations of the US dollar's tendency to weaken early in the week.

A successful continued rise is likely to return to the 1.14000 zone to test the resistance after 6 weeks of the price hovering below it.

On the other hand if the price plummets again, the price support zone that will be of concern is at 1.12500 which still manages to support the price from falling lower.

The lower price decline will again test the main support zone in 2021 which is 1.12000.