/EUR/USD spikes to session tops, 1.21 back on sight post-NFP | by Haresh Menghani | FXStreet

EUR/USD spikes to session tops, 1.21 back on sight post-NFP | by Haresh Menghani | FXStreet

The EUR/USD pair stalled its mid-European session corrective slide and jumped back to the 1.2080-90 supply zone post-dismal headline NFP print.  The US Dollar surrendered early gains and drifted into negative territory after the latest monthly US jobs report showed a larger than expected moderation, with an addition of 148K jobs in December as against 190K expected.  Meanwhile, the unemployment rate held steady at a 17-year low level of 4.1% and average hourly earnings rose 0.3% in December, with an annual increase in wages at 2.5%, matching consensus estimates.  Today’s downbeat headline NFP print dampened prospects for a March Fed rate hike move and eventually prompted some fresh US Dollar selling during the early NA session.  Friday’s US economic docket also features the release of ISM non-manufacturing PMI but is unlikely to be a game changer amid post-NFP bearish USD sentiment.  Technical outlook Valeria Bednarik, American Chief Analyst at FXStreet writes: “Technically, the downside potential remains limited, as in the 4 hours chart, the pair is holding above its 20 SMA, which maintains its bullish slope, while the Momentum indicator hovers around its mid-line, as the RSI retreats within positive territory.” “The pair has a small resistance in the 1.2070 region  and a more relevant one at 1.2100. Above this last, the rally should gain momentum, with the next probable bullish target at 1.2040. Below 1.2000, on the other hand, supports come at 1.1960 and 1.1920” she added further.