EUR/USD: The Euro is gaining ground despite a strong NFP, but the trend remains bearish


© Reuters. EUR/USD bounces this afternoon

Investing.com – in Spite of new lows weekly 1.1135 during the afternoon, the EUR/USD pair managed to finish the week in beauty, with a peak of 1.1195 at the end of the european session.

The report NFP on employment US has initially benefited the Dollar, which has pushed the Euro-Dollar on its lows of the day, but although the job creations have proven to be far superior to the expectations, wage growth has disappointed.

However, this particular influence the monetary policy of the Fed, and low wage growth is unlikely to encourage the Federal Reserve to show more hawkish tone, a reflection which was then weighed on the Dollar, much more than the advised economic Trump Larry Kudlow said in the afternoon that he thinks that the Fed is considering lowering the rate.

The ISM service for the month of April, below expectations has also contributed to the weakening of the Dollar, and to stimulate a rebound of the EUR/USD. The index has posted a decline in surprise at 55.5 points, after 56.1 the previous month, while the consensus had expected a rise to 57.2 points.

From a technical point of view, the rebound observed this afternoon, however, is not sufficient to call into question the profile overall downtrend of the EUR/USD pair.

The moving average of 200 hours at 1.1183, the moving average 100 hours at 1.1195 and the psychological threshold of 1.12 are an important area of resistance in which the bias will remain negative, in view of the media located at 1.1150, 1.1135, and then 1.11.

If the increase continues at the top of 1.12, and that the positive momentum continues, the resistances of 1.1225, 1.1260 and 1.13 would be to monitor.

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