FxWirePro: EUR/USD gains some upside momentum but still bearish
The EUR /USD pair strengthened on Thursday as greenback dipped after a round of weaker-than-expected U.S. labor market data, affirming a gradual pace for raising interest rates by the Federal Reserve. The greenback was a…
The EUR /USD pair strengthened on Thursday as greenback dipped after a round of weaker-than-expected U.S. labor market data, affirming a gradual pace for raising interest rates by the Federal Reserve.
The greenback was already on the defensive after Wednesday's issue of the Fed's policy minutes failed to provide a clear picture of future interest rate increases. The slide extended with Thursday's poor set of U.S. economic data.
The ADP National Employment Report showed private-sector payrolls increased by 158,000 jobs last month, lower than the 230,000 positions created in May and below economists' expectations for a gain of 185,000.
The U.S. services sector index was also released on Thursday, showing an index of 57.4 in June, compared with a forecast of 56.5. The employment index, however, fell to 55.8, compared with 57.8 in May, suggesting a cooling labor market.
Further upside in this pair is expected to be limited as the pair finds strong resistance at 1.1487 is set limit further upside and bring decline towards lower levels in the short term.
To the upside, the immediate resistance can be seen at 1.1406, a break above this level would expose the pair to next resistance level at 1.1447.
To the downside, immediate support can be seen at 1.1357, a break below at this level will open the door towards next level at 1.1326.
