The US dollar surged after July’s nonfarm payrolls more than doubled the market’s expectations. Multiple tests of the demand zone around 1.0100 suggests solid interest in keeping the rebound intact. 1.0290 next to the 30-day moving average is a key hurdle ahead. A bullish breakout would put the single currency back on track as short-term sellers capitulate. Then 1.0450 at the start of the July sell-off would be the next target. However, a fall below the said support could send the pair back to parity, putting the recovery at risk.
