US NFP Data Has Caused a Slump in Trading Value of EUR/USD
EUR/USD is currently under a tremendous amount of pressure as the United States has recently shared its NFT data. The situation has gone extremely south for the pair and its value has started moving towards a low of 1.01500.
EUR/USD is Down to 1.01500
According to the analysts, the Nonfarm Payrolls data shared by the United States has brought the EUR/USD pair under a lot of pressure. The pair has become bearish and things are not looking good so far.
On Friday morning, the United States shared the NFP results and they showed that in the month of July, the NFP rose tremendously.
To be exact, the NFP has reportedly surged by 528,000 in the month of July. The expectations that were set for the month of July were just 250,000. As the results were more than double the expected outcome, the USD was bound to go skyrocket.
Technical Analysis of the EUR/USD Pair
With the posting of stronger than expected NFP results, the value of the greenback has risen tremendously.
The analysts were quick to analyze the data and provide technical analysis about the pair for a proper assessment.
The analysis shows that following the unexpected outcome and the flight of the greenback, it is 1.0200 where the first technical support has been formed.
The price chart for the pair shows that 1.0200 is the mark where the 50-period SMAs and the 20-period SMAs seem to be aligning. To be exact, it is the four-hour chart for the pair, which shows such a trend.
1.0200 May Become a Resistance Level
It is feared that if the trading value of the pair falls below 1.0200, it may become its strong resistance level. This would be a very difficult situation as the investors will need to apply a lot of buying power to cross this mark.
In the worst-case scenario where the pair does end up falling below the 1.0200 level, then it will become even more bearish. In that case, the first strong support mark would be 1.0150.
The second strong support level and a highly bearish point would be 1.0100. The 1.0100 price mark is also the psychological level for the pair.
If the price of the EUR/USD ends up falling below the 1.0100 mark, then more support levels will be formed.
The Current Resistance Levels
For now, the resistance level for the EUR/USD pair has been formed at 1.0230. This mark is just behind the 100-period SMA, which is at 1.0260.
According to analysts, the EUR is highly likely to move south and then move in the right direction. This is because the US is yet to release its data surrounding jobs for the month of July.
Therefore, the investors must remain cautious and wait for the job data to come out before making any investment decisions.