Average Hourly Earnings were forecast to show a monthly increase of 0.3%. The actual income change is just 0.2%. Non-Farm Employment Change was expected to show a reading of 176,000 new jobs. The reality is that only 114,000 new jobs have been created. Market consensus was that the Unemployment Rate would be at 4.1%. Released number shows unemployment at 4.3%.
On the EUR/USD charts, it resulted in a move up to the 1.0925 level. It is assumed that the fundamental move is over, and the pair will resume normal trading. In this case, the technical levels will once again be relevant.
Economic Calendar Analysis
On Monday, the Institute for Supply Management will publish the Services sector Purchasing Managers Index. The index is the result of a survey of top 300 managers in the services sector. A reading above 50.0 is positive. A reading below 50.0 is seen as negative.
Market consensus forecast is that the reading will be a positive 51.4. A reading below this number should cause a decline of the US Dollar.
Besides the mentioned event,the second week of August lacks notable events. The only event that could cause a market reaction is the publication of the weekly US Unemployment Claims on Thursday at 12:30 GMT.
EUR/USD hourly chart analysis
A potential decline of the rate is expected to look for support in the 1.0900 mark. Further below, the 1.0880 level could act as support, before the rate reaches the 1.0840/1.0850 rangeOn the other hand, an extension of the prior surge is set to face the 1.0940/1.0950 range, prior of a test of the 1.1000 mark.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the recovery occurred from the 100-day simple moving average. However, it is clear that fundamentals, not the SMA caused the move.The fundamental adjustment has moved the rate back to mid-July levels. In the near term future, the rate is expected to respect the round levels that have impacted it in the past.
In addition, we have spotted a channel up pattern that could guide the rate up to 1.1200.
Daily chart
Read More: Technical Analysis
Traders go short
After the US employment release, Dukascopy traders shorted the pair, as 56% of all open position volume was in short positions.
Meanwhile, pending trader set up orders were set to sell even more. Namely, in the 100-point range around the pair, 72% of orders were to sell and 28% were to buy.
On Thursday, the open positions were 53% long and pending orders were 51% to buy. At that time, traders were not sure where the EUR/USD will be heading next.