EUR/USD Found The Floor Once More As US NFP Sent Greenback Higher

Image Source:

The EUR/USD currency pair lost the key technical handle after the US Jobs Report thumped forecasts.

The US NFP hit the highest level in a year. March rate cut hopes appeared to be all but buried.

US Average Hourly Earnings also gained ground in January.

The EUR/USD currency pair continued to churn on Friday, as its near-term, choppy technical pattern was kept intact while the euro cycled against the US dollar.Meanwhile, the US Nonfarm Payrolls wildly outperformed market expectations, hitting a one-year high and bringing sharp upside revisions to previous data points. Investors hoping for faster, sooner rate cuts from the US Federal Reserve witnessed rate cut hopes dwindle as the US domestic economy continued to surprise with its sturdiness.

Market Movers: EUR/USD Pair Back Into Familiar Lows as Cyclical Pattern Dragged the Pair Down

The EUR/USD pair climbed into the 1.0900 range early on Friday before getting dragged back down post-NFP.

US Nonfarm Payrolls climbed to 353,0000 in January, vaulting well over the forecasted reading of 180,000.

December’s NFP figure also saw a sharp upside revision to 333,000 from 216,000.

Year-over-year US Average Hourly Earnings also gained in January, coming in at 4.5% versus the forecast 4.1% and the previous period’s 4.4% (revised upwards from 4.1%).

Month-over-month US Average Hourly Earnings climbed 0.6% in January versus the forecast 0.3% and the previous reading of 0.4%.

The US Unemployment Rate held steady at 3.7% in January. Markets expected a tick upwards to 3.8%.

The Michigan Consumer Sentiment Index gained to read 79.0, above the forecasted 78.9 and above the previous month’s reading of 78.8.

Euro Price on Friday
The table below shows the percentage change the euro against other major currencies on Friday. The euro was the strongest against the Japanese yen.

Technical Analysis: EUR/USD Pair Steeply Off of Recent Highs as Whipsaw Pattern Remained
The EUR/USD currency pair came within touching distance of the 1.0900 figure early on Friday, but the pair got dragged back into familiar lows below 1.0800, near the 1. 0780 mark.Friday’s bearish action saw the EUR/USD pair tumble out of a familiar consolidation zone between the 200-day and 50-day Simple Moving Averages (SMA), between the levels of 1.0900 and 1.0850. The EUR/USD continued to drift into the low side during a choppy trading session, and the pair was down over 3% from December’s swing high into the 1.1140 mark.

EUR/USD Hourly Chart
(Click on image to enlarge)

EUR/USD Daily Chart
(Click on image to enlarge) More By This Author:EUR/JPY Price Analysis: Reclaimed 160.00 Amid Upbeat SentimentAUD/USD tumbles following US jobs report, RBA decision awaitedEUR/GBP Edges Mildly Higher, Still Tallies A Losing Week