Key Highlights
The Euro declined this past week and traded below the 1.1700 support against the US Dollar.
There is a contracting triangle forming with resistance at 1.1750 on the 4-hours chart of EUR/USD.
This past week in the US, the Nonfarm payrolls figure released by the US Department of Labor for Sep 2017 posted a decline of 33K, compared with the forecast of +90K.
The US unemployment rate in Sep 2017 declined from the last 4.4% to 4.2%.
EURUSD Technical Analysis
The Euro was under a lot of pressure this past week and declined below 1.1700 against the US Dollar. After disappointing NFP results, the EUR/USD pair found support at 1.1670.
The pair is currently recovering and is trading above the 1.1700 handle. However, there is a contracting triangle forming with resistance at 1.1750 on the 4-hours chart.
The 23.6% Fib retracement level of the last decline from the 1.2004 high to 1.1669 low is also near the triangle resistance. Therefore, it won’t be easy for buyers to break the 1.1750 resistance zone.
Should there be a close above 1.1750, the pair will most likely test the 50% Fib retracement level of the last decline from the 1.2004 high to 1.1669 low at 1.1840.
US Nonfarm Payrolls
This past week in the US, the Nonfarm payrolls figure for Sep 2017 was released by the US Department of Labor. The forecast was slated for a reading of 90K compared with the last 156K.
The actual result was on the lower side, as there was a decline of 33K in the NFP. However, the last reading was revised up from 156K to 169K. On the positive side, the US unemployment rate in Sep 2017 declined from the last 4.4% to 4.2%.
The report stated:
Total nonfarm payroll employment was little changed in September (-33,000), after adding an average of 172,000 jobs per month over the prior 12 months. In September, a steep employment decline in food services and drinking places and below-trend growth in some other industries likely reflected the impact of Hurricanes Irma and Harvey. Employment rose in health care and in transportation and warehousing.
The overall result was on the negative sign, which lifted the EUR/USD pair from the 1.1669 low. There are chances of more gains in the near term, but the pair faces many hurdles like 1.1750 and 1.1840.
