Major resistance 1.1078-80
EURUSD has recovered more than 20 pips after US NFP data. US economy has added 130000 jobs in Aug compared to a forecast of 164000 and revised down in Jul to 159000. The unemployment rate remains steady at 3.7% and average earnings got slightly improved from 0.4% vs estimate of 0.3%. The pair hits a high of 1.10464 after the data and is currently trading around 1.1405.
US 10 year bond yield lost more than 2.5% after the jobs data to 1.566% and spread between US 10-year and 2-year has widened to 3 bps from -5 bps.
On the flip side, near term support is around 1.1000 and any violation will drag the pair to the next level till 1.0960/1.0925. Any major bearish continuation only below 1.09200.
The major level to be watched is 1.1080 (support turned into resistance) and any move above this will take the EURUSD to next level till 1.1100/1.11750-80.
It is good to buy on dips around 1.10400-420 with SL around 1.10200 for the TP of 1.10900.
