- The Euro corrected from 1.2070 to 1.1850 against the US Dollar this past week.
- The EUR/USD is currently holding a major bullish trend line support near 1.1850-70 on the 4-hours chart.
- The US Non-farm Payrolls in August 2017 were 156K, down from the last 189K (revised).
- The US Unemployment Rate was up in August 2017 from 4.3% to 4.4%.
EUR/USD Technical Analysis
The Euro was under pressure above 1.2050 against the US Dollar. As a result, there was a decline in EUR/USD recently, but the pair is holding a major support area near 1.1850.
Looking at the 4-hours chart, there is a major bullish trend line support near 1.1850-70. The mentioned 1.1850 level is also a key horizontal support. Furthermore, the 100 simple moving average (H4) is also positioned near 1.1825.
Therefore, the 1.1850 support is very important for the current uptrend in EUR/USD. On the upside, the pair face challenges near 38.2% and 50% Fib retracement level of the last decline from the 1.2070 high to 1.1823 low at 1.1917 and 1.1946 respectively.
US NFP, Unemployment Rate and ISM Manufacturing Index
This past Friday, there were a few important releases in the US such as the non-farm payrolls of August 2017, the unemployment rate and the ISM Manufacturing Index.
The nonfarm payrolls figure published by the US Department of Labor for August 2017 was forecasted to increase by 180K. However, the actual result was disappointing, as the nonfarm payroll employment increased by 156K in August 2017.
Furthermore, the last NFP reading was revised down to 189K. Looking at the US Unemployment Rate, there was an increase in August 2017 from 4.3% to 4.4%.
The report added that:
The labor force participation rate, at 62.9 percent, was unchanged in August and has shown little movement on net over the past year. The employment-population ratio, at 60.1 percent, was little changed over the month and thus far this year.
Later, the Institute for Supply Management (ISM) Manufacturing Index for August 2017 was released. The forecast was slated for a rise from 56.3 to 56.5. However, the result was positive, as there was an increase to 56.8.
Overall, the EUR/USD is holding a monster support at 1.1850. As long as the pair is above 1.1850, it might recover and trade back towards 1.1950-1.2000 in the near term.