FxWirePro- EURUSD trades lower after upbeat US NFP, good to sell on rallies

Intraday trend – Bearish

Intraday resistance- 1.0780

The pair pared some of its gains after upbeat US NFP data. US economy has added 390K jobs in May, above expectations of 325K. The unemployment rate rose to 3.6% vs. 3.5%, hourly earnings dropped to 0.3% below the estimate of 0.4%. The positive jobs data will increase the chance of a rate hike by the Fed. US 10-year yield surged more than 2% on optimistic jobs number. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Jun jumped to 99.30% from 97.6% a week ago. The pair made an intraday low of 1.07039 and is currently trading around 1.07117.

Technical-

Any breach below 1.0700 confirms an intraday bearishness; a dip to 1.0600/1.05000 is possible.

The immediate resistance to be watched is 1.0780; any violation above will take the pair to 1.0825/1.0875/1.0900.Indicators (4-hour)

Directional movement index –Neutral

CCI (50) – neutral

It is good to sell on rallies around 1.0728-30 with SL around 1.0785 for a TP of 1.0600.