In response to Friday’s rather mixed US Nonfarm Payrolls report, the EUR/USD has been heading higher. However, as FXStreet’s Analyst Yohay Elam points out, the general tendency is to the downside, and it has even gotten new factors to support the move.
“The NFP served as a catalyst for unwinding dollar longs ahead of the long Fourth of July holiday. Without persistent price pressures, the Federal Reserve is unlikely to be in a hurry to trim its bond-buying program. That was Friday, and it’s time to reconsider. Nothing in the labor statistics prevents the Fed from saying that it will print fewer dollars.”
“The final Markit Services Purchasing Managers’ Indexes for June are due out in the old continent, but these forward-looking indicators may already be outdated, given the quick spread of coronavirus. After passing through the United Kingdom, the contagious Delta covid strain is now spreading across Europe. It has the potential to disrupt the reopening.”
“Support is expected at 1.1840, which is a carryover from last week, and then at 1.1808, which is the lowest level since April.”
“The pair’s recovery on Friday was halted by resistance at 1.1880, which capped the pair’s recovery. Then there’s 1.1910, which held the EUR/USD lower in late June.”/n
