- The EUR /USD pair declined on Friday after data showed U.S. employers hired more workers than expected in July and also raised wages, signaling labor market tightness.
- The Labor Department said that nonfarm payrolls increased by 209,000 jobs last month, above the 183,000 rise expected by economists.
- The strong jobs report is likely to clear the way for the Federal Reserve to announce a plan to start shrinking its $4.5 trillion bond portfolio in September, and could strengthen its case to raise rates for the third time this year in December.
- The ongoing weakness is set to continue for this pair as the resistance level at 1.1889 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
- To the upside, the immediate resistance can be seen at 1.1860, a break above this level would expose the pair to next resistance level at 1.1889.
- To the downside, immediate support can be seen at 1.1826, a break below at this level will open the door towards next level at 1.1788.
Resistance Levels
R1: 1.1860 (50% Retracement level)
R2: 1.1889 (61.8% Retracement level)
R3: 1.1900 (Psychological levels)
Support Levels
S1: 1.1826 (38.2% Retracement level)
S2: 1.1788 (23.6% Retracement level)
S3: 1.1723 (July 31st lows)
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