FxWirePro:EUR/USD Trade Idea

EUR/USD has shown a minor recovery after US non farm payroll data. The pair has started to decline sharply and lost more than 80 pips. US economy has added only 157000 jobs for the month of Jul compared to forecast of 193000 and unemployment rate declines below 4% and wage growth are steady at 2.7%. But upward revision 248000 shows that labor market is growing at stronger pace. It hits low of 1.15300 at the time of writing and is currently trading around 1.15325.

US 10 year bond yield has lost more than 2% after hitting high of 3.0160%. It is currently trading around 2.95%.  

EUR/USD’s near term support is around 1.1500 and any convincing break below 1.1500 confirms minor weakness and decline till 1.1400/1.13600 is likely.
 
On the higher side, near term resistance is around 1.1645 (7- day MA) and any break above will take the pair to next level till 1.1680 (20- day MA)/1.1750/1.1800. The minor resistance is around 1.1600.

It is good to sell on rallies around 1.1585-590 with SL around 1.1645 for the TP of 1.1500/1.1400.

Resistance

R1- 1.1600
 

R2 –1.1645

R3- 1.1685

Support               

S1- 1.1500

S2- 1.1400

S3- 1.1355