EUR/USD lost its shine after upbeat US NFP. It hit a high of 1.06293 at the time of writing and is currently trading around 1.05650.
In November 2024, the U.S. added 227,000 jobs, much more than the expected 202,000, showing a strong job market after a weak October. The unemployment rate stayed steady at 4.2%, but there was a drop of 355,000 full-time jobs. Private sector jobs rose by 194,000, with strong growth in leisure and hospitality. Wages increased by 0.4% compared to last month, indicating stable earnings.
The US treasury yield gained momentum after upbeat US jobs data.
Technical Analysis Overview
The pair remained above both short-term (34 and 55-4H EMA) and long-term (200-4H MA) moving averages.
Resistance and Support Levels
Resistance Levels: Near-term resistance is at 1.0660. A breakout above this could push the pair towards targets at 1.070/1.0760/$1.0835, and possibly 1.0900. Major bullish momentum is expected only if prices surpass 1.1000, which would open the door to 1.1070 and 1.1150.
Support Levels: Immediate support is at 1.0550. A drop below this could lead to further declines to 1.0490/1.0460/1.0435/1.0400/1.0370/1.0330/1.0240.
Indicator Insights
Indicator Insights (4-Hour Chart): The Commodity Channel Index (CCI) indicates a bullish trend, while the Average Directional Movement Index (ADX) suggests a neutral outlook.
Suggested Trading Strategy
Given the weak sentiment in technical indicators, a sensible strategy would be to sell on rallies around the 1.0600 mark, with a stop-loss at 1.0660 and a target price of 1.0435 for potential gains.
