Euro falls after surprise US employment numbers

ForexNewsNow | Published on November 5, 2010 at 11:18 am

Euro US Dollar Exchange Rate ForecastNEW YORK (Forex News Now) – The Euro has fallen today after the United States Bureau of Labor Statistics announced its Non-Farm Payroll numbers during the morning in America.

The report, which was expected to see an addition of 63 thousand jobs in the in the United States, surprised the markets when it printed the addition of One hundred fifty-one thousand jobs. The previous month’s report was also revised higher, from a loss of 95 thousand to a loss of forty one thousand.

While the Euro has had a move down this morning, looking at the bigger picture, FX traders are still undoubtedly fixated on the quantitative easing of the Americans. FX traders pushed the EUR/USD pair above the 1.40 area earlier this week, and it appears that the rate is trying to retest the handle to find out if support will hold at that point.

On the attached chart, it is plain to see that the area has held up so far, and looks like the area may, in fact, turn into support. The patient FX trader may be rewarded as more people will pile into longs in this pair if the area holds.

The possible move up could be to 1.45 before the pair sees major resistance, and traders will see that the pair finds out if the area can hold. The weekly shows even more promise, as the first major weekly resistance is found at 1.53!

As the Europeans did not mention a larger easing cycle, and the Americans did, it is likely that this pair is now going to rise in value over the balance of time. The fundamentals and charts are starting to line up, and will be seen as a valid set up by but technical and fundamental traders alike. As such, this pair could move quite rapidly over the next few weeks.

eur usd euro dollar fx analysis

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