EUR/USD, confusion after the US Unemployment data!
You’ve probably watched the NFP and US unemployment data today and it’s possible that you’ve been confused as well. After the NFP was way bellow the expectations, 151K vs 190K, the unemployment data shows fall bellow the 5,0% at 4,9%. The market was undecided where to go and even the first reaction was US dollar weakness, the same returned the strenght soon. It was a normal reaction in my point of view and I wrote that after I’ve monitor the moves in the beggining. Unemployment data gives FED enough space for the possible furder tightening of the monetary policy in the coming months. Sure, in this week the US dollar was smashed all over, mostly based on the negative comments from New York FED President Dudley. He said, that financial conditions have tightened since December’s decision. What now after this? Is this enough for the next move or we should wait for another important data in the coming weeks and months? Sure we are and this is why the FX is so interesting. You never know what is coming tomorow and what could change the market direction in only few seconds. Here are the levels to watch in the EUR/USD now, 1.1120 is the minnor support, 1.1045/70 is stronger one. On the way up, 1.1200> 1.1240 is intraday resistance. See you soon, let’s relax over the weekend. It was a great and very interesting week. 😉