Daily forex winners & losers
A stronger than expected nonfarm payroll report saw a boost in risk appetite early in the U.S. session, with the euro surging 0.64% against the greenback an hour into North American trade. The U.S. economy created 117K jobs last month, besting calls for a read of just 85K, with the private sector jobs growing by 154K. Although the data initially saw a boost in the dollar, a turn in risk appetite saw traders seeking yields, weighing on the dollar which fell against all its major counterparts soon after the print.
The gains are likely to be short-lived, however, as ongoing concerns about the situation in Europe and global growth prospects weigh on investor sentiment. The euro climbed as high as 1.4230 before rebounding off the 50% Fibonacci extension taken from the Aug. 1 and Aug. 3 crests. Interim resistance holds here, with subsequent ceilings eyed higher at the 38.2% extension at 1.4250 backed by upper-bound trendline resistance just shy of the 1.43-figure. Support rests at the 61.8% extension at 1.4280 followed by 1.4140 and the 1.41-figure. A break below this level sees targets at the 1.4060 mark, backed by 1.4040.
Key Levels/Indicators USD/EUR
|
Level/Indicator |
Level |
|
50-Day SMA |
1.4332 |
|
20-Day SMA |
1.4237 |
|
10-Day SMA |
1.4300 |
|
2011 EUR High |
1.4939 |
The Swiss franc was relatively subdued on today’s jobs report, holding between the 76.4% and 100% short-term Fibonacci extension taken from the July 31 and Aug. 1 crests. The swissie is likely to re-take these losses as the knee-jerk reaction to the nonfarm payrolls fades, with downside target eyed at the 0.76-figure, 0.7530 and the 161.8% extension at 0.7490. Topside resistance holds at the 76.4% extension at 76.80 backed by 0.7715 and the 50% extension at 0.7740. Swissie price action will be largely dictated by risk appetite today as markets digest this morning’s employment report.
Key Levels/Indicators USD/CHF
|
Level/Indicator |
Level |
|
50-Day SMA |
0.8270 |
|
20-Day SMA |
0.8021 |
|
10-Day SMA |
0.7838 |
|
2011 CHF High |
0.7605 |
Michael Boutros, Currency Analyst for DailyFX.com is a Technical/Fundamental Analyst specializing in the FX markets. E-mail: mboutros@fxcm.com.
Twitter: @MBForex
WEB: www.fxcm.com
