EUR/USD (current price: 1.1490)
The most traded currency cross hit its highest level since July after the announcement of the negative employment report. The pair traded as high as 1.16 but finished the day below 1.15 after a strong reversal in the aftermath of the release of the Non-Manufacturing PMI. Despite the reversal, EUR/USD is still in an uptrend, but the re-test of the 1.145 support level is likely today. Light volumes and choppy trading are expected as traders will likely hold back before tomorrow’s official jobs report.
Our assessment: The long-term picture still looks neutral for the pair, but bulls were happy to see the new high yesterday. The reversal warns of a short-term correction, but a break above 1.165 would confirm a new up-trend for the Euro.
