NFP Shockwave Wipes Out EURUSD Gains as King Dollar Roars Back; Bears Target 1.1525

EURUSD pared most of its gains after upbeat US jobs data. It strikes an intraday low of 1.15947 and is now trading at about 1.15875

Markets were taken by surprise by the U.S. labor markets on Friday. May Nonfarm Payrolls came in at 172,000, more than doubling the expected 85,000. April’s numbers were revised considerably upward from 115,000 to 179,000. The unemployment rate remained at 4.3% with a cooling in wage growth to 3.4% YoY. Leading the hiring were healthcare, transportation and warehousing, and retail, while information and federal government saw the largest declines. Following this news, the near-term expectations for Fed rate cuts were destroyed. The U.S. dollar and treasuries saw significant declines resulting from the repricing of “higher-for-longer” monetary policy that will extend to late 2026. Following this news, gold and cryptos saw upward pricing.

Major support- 1.1580/1.1525/1.14835. Near-term resistance- 1.16620/1.1725/1.1765/1.1800

It is good to sell on rallies around 1.1618-20 with SL around 1.1670 for a TP of 1.1525.