FxWirePro- EURUSD Daily Outlook

EURUSD pared most of its loss on mixed US Non-farm payroll. The US economy added 223000 jobs in Dec, lower than 256K (revised data for Dec). Unemployment declined to 3.5%, a per-pandemic low. The US dollar index lost its shine and dropped more than 150 pips after jobs data. It hits an intraday high of 1.06238  and is currently trading around 1.06224.

Private sector employment rose by 235000 in Dec, above the estimate of 152K. The number of people who have filed for unemployment benefits declined to 204K in the week ending Dec 31st.

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Feb rose to 75.7% from 67.70% a week ago.

The US 10-year yield lost more than 4.5% from an intraday high of 3.75%. The yield spread between 10 and 2-year widened to -70 basis points from -46.9 bpbs.

Technical:

 On the higher side, near-term resistance is around 1.0660 and any convincing breach above will take the pair to the next level of 1.0725/1.0800.

The pair's immediate support is at 1.0570, breaking below targets of 1.050/1.0430./1.0350.

Indicator (4-hour chart)

Directional movement index – Neutral

CCI(50)- Bearish

It is good to buy on dips around 1.0600 with SL around 1.0560 for a TP of 1.0760.