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NFP figure better than expected, EURUSD down

NFP figure better than expected, EURUSD down

The Non Farm Payroll figure for January came in above expectations: 257K instead of 236K expected. The number was well below the previous figure of 329K. There was a slight rise in the unemployment rate to 5.7 percent (5.6% previously). The impact of economic growth is seen in willigness to hire more workers and in rising hourly earnings, that increased by 0.5%.

EURUSD, 240

EURUSD, 240 min

The NFP Report moved EURUSD to 1.1368 support level and the 4h Bollinger Bands just below it. There is some support  in this area but the lower high in 4h chart makes me wonder if this area will hold the second time. After all the American economy is diverging from the European one and the growth in US is expected to encourage the Fed to start hiking rates gradually. This obviously increases the attractiveness of the USD over EUR. Elsewhere the US Dollar is gaining strongly against the Japanese Yen, the USDJPY is up over 0.9% at the time of writing. Trading against the levels that cause market to reverse and give momentum reversal signals would be preferable. Expect the volatility to continue and keep an eye on price action at support and resistance levels. Only trade what you see, not the what you anticipate.

Janne Muta
Chief Market Analyst
HotForex

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.



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