EUR/USD Falls After US Labour Market Data

FXOpen

On Friday, key employment data from the US was released, which proved somewhat mixed.

On the one hand, the increase in jobs fell short of expectations. According to ForexFactory, the Non-Farm Employment Change figures were:
→ actual = 142K;
→ expected = 164K;
→ previous month = 89K.

On the other hand, the unemployment rate dropped from 4.3% to 4.2%.

Thus, the economic data showed that the US labour market is slowing down, but not at a rate that would raise significant concerns about US economic growth prospects (as it did after last month's reports).

Friday’s release of US labour market news sparked volatility, and its impact is likely to be felt today, including on the EUR/USD rate.

On 29 August, we wrote that:
→ a bearish head and shoulders (H&S) pattern had formed on the chart;
→ the price broke through the rising trendline (shown in yellow);
→ the target for the decline could be the 1.10415 level.

Since then, the price reached the target (shown by the arrow) before reversing upwards. However, on Monday morning, the US dollar is strengthening against other currencies, with the EUR/USD rate dropping below Friday’s low and signalling the possibility of another test of the 1.10415 level.

Technical analysis of the EUR/USD chart shows that the H&S pattern acted as a resistance zone on Friday, indicating that the bears are gaining confidence. It is possible that further strengthening of the US dollar could lead to the rate reaching the median line of the blue ascending channel.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Shares

Tesla (TSLA) Shares Drop Over 15%

Among the biggest decliners in the technology stock index (we covered the reasons behind the Nasdaq 100’s drop earlier this morning) are Tesla (TSLA) shares, which have plummeted by more than 15% in a single day—their worst performance

Indices

Nasdaq 100 Enters Correction

As shown on the Nasdaq 100 (US Tech 100 mini on FXOpen) index chart today:
→ The index has fallen below the psychological 20,000-point level, reaching its lowest in approximately six months.
→ The decline from the December peak now exceeds

Shares

Broadcom Inc. (AVGO) Stock Surges Over 8%

As shown on the chart, Broadcom Inc. (AVGO) shares soared by more than 8% in Friday’s trading session.

The bullish momentum is driven by strong quarterly results released last week and an optimistic outlook highlighting sustained demand in the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.