Eurusd Turns Bearish After A Mixed Nfp Release

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Eurusd Turns Bearish After A Mixed Nfp Release

EUR/USD Turns Bearish Again After A Mixed NFP Release

Not everything seems great or bad about the recent NFP report. That's why it would be better to say that the NFP report was mixed with some good and bad news. For starters, the number of new jobs went up while the wages went down. In addition, the unemployment rate also went up a notch during August.

After the report, the USD turned a little bullish and was then supported by the recent PMI report as well. As a result, the EUR/USD could no longer sustain its bullish momentum and thus turned downwards.

The recent manufacturing index data was better than expectations, but it still showed that the sector continues to contract rather than expend. On the other hand, the employment index was near 48.5, while the market was expecting it to be around 44.2.

DXY Trades Near 103.27 Level

After the NFP report, the Dollar Index turned lower and touched the 103.27 level. However, the decline was stopped by the PMI, which turned out to be better than expectations.

The US yields also didn't like the recent data nd thus fell to 10th August lows. The bond yields have thus recovered some of that loss but still remain in the red.

Based on the current fundamental outlook, the EUR/USD appears to have a bearish outlook in the short-term. And if we take a look at the technicals, the RSI, as well as the MACD, also highlight that EUR/USD will remain bearish.

The MACD indicator which indicates the current trend in EUR/USD is also showing red bars which means bears are in control. And if we take a look at the 20 SMA, 100 SMA, and 200 SMA on the EUR/USD D1, they all indicate bearish pressure.

So both the fundamental as well as the technical outlook of the EUR/USD favors the bears, which means trouble is ahead for the EUR. Looking ahead, the important EUR/USD support levels are 1.0780 and then 1.0760. On the contrary, the neaest resistance levels for the EUR/USD to watch out are 1.0815 and then the 1.0830.

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