The Euro showed mild reaction on weaker than expected US NFP data (July 157K vs 193K f/c and upward-revised June figure from 213K to 248K). The pair ranged between 1.1560 (new five-week low) and 1.1610 as markets were digesting results of US labor data. Disappointing NFP numbers (although well within levels that are seen positive) were accompanied with average hourly earnings and unemployment which came in line with expectations (0.3% & 3.9% respectively), marking overall result positive. Solid labor sector figures would keep the Fed on the front foot for further rate hikes, as the central bank kept the door open for two more hikes this year. Overall picture was improved by better than expected US trade data as trade gap narrowed to $46.3B in July vs forecast for $46.5B. The sentiment could be soured by weaker than expected US Services PMI data (July 56.0 vs 56.2 f/c / prev). The pair maintains negative tone, following strong fall in past three days, and is on track for the second weekly close in red, which reinforces negative outlook. Bearish daily techs support scenario, however, oversold conditions may result in consolidation before bears continue towards key near-term support at 1.1508 (21 June low), violation of which would expose next target at 1.1447 (50% of 1.0340/1.2555 ascend).
Res: 1.1616; 1.1646; 1.1662; 1.1675
Sup: 1.1560; 1.1527; 1.1508; 1.1447
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