The EUR/USD pair fell sharply on Friday, after consolidating in a range close between Monday evening and this morning.
This morning, the orders to the German industry for the month of may, frankly, disappointing, had already begun to weigh on the Euro, and it is the next “Dollar” of the equation, which then led to a sharp acceleration to the downside this afternoon.
The report NFP on job creation, US in the month of June has surprised very positively, with 224k job creation against 160k expected, which was even more amazed that other employment statistics US in the month of June were found to be much less satisfactory.
Two technical signals bearish important
In the Face of the report to the NFP, the EUR/USD pair has so for the isntant marked a low 1.1215, but in light of the significant signals to bearish, which was triggered by the fall of the day, a continuation of the decline is not excluded.
In fact, the EUR/USD has broken below the moving average 100 days located at 1.1260, and also below the upward trend line visible on daily data since the low of may 30.
At this stage, the area of 1.1180-1.12 is the last support to be taken into account before considering a return on the hollow statements just above 1.11.
In addition, beyond to be a good surprise for the US economy, the strength of the report NFP is also back expectations of a rate cut from the Fed.
For the moment, it remains virtually guaranteed that the Fed will lower its rate at the end of the month, but the NFP is higher than expected reduces the possibility that this decline rate is over 0.25%, or the operation is then repeated before the end of the year, which strengthens the greenback.
The increase, it can be considered that an increase above 1.13 at a minimum, would be needed to alleviate the bearish pressure.