The US dollar gained strength after nonfarm payroll data showed that 147,000 new jobs were added, surpassing the expected 110,000. The unemployment rate improved to 4.1% from 4.3%. However, average hourly earnings were lower than anticipated, increasing by only 0.2% month-over-month and 3.7% year-over-year. A significant part of the job growth, totaling 73,000, was due to government hiring at state and local levels.

Currency Pairs Reactions

In terms of currency pairs, the EURUSD dipped below its 100-hour moving average, hitting a session low of 1.17163. This indicates a bearish trend, with resistance at 1.1746 and 1.17529. USDJPY rose above both 100- and 200-hour moving averages, settling around 145.20. It has resistance targets at 145.47 and 145.76. If it stays above 144.56, a strong bullish trend is expected. GBPUSD fell past key technical levels, finding initial support at 1.35786. Resistance is between 1.3615 and 1.3633, while further downside pressure may be seen near 1.35292. USDCHF moved above the 100-hour moving average and last week’s low, encountering resistance at 0.8002 and support near 0.7957. A break above 0.8000 would significantly favor buyers. The market appears more focused on the strong job creation figures rather than the softer wage data. While the US created more jobs than expected, most of this growth came from the public sector, not private hiring. This makes the employment strength seem less widespread. Additionally, slow wage growth suggests less inflation pressure, which might lead to slower interest rate hikes. Price movements in major dollar pairs highlight this contrast. Better unemployment figures boost confidence in the economy, but stagnant wages mean policymakers have room to delay tightening. The overall impact? A short-term rise for the dollar, but with mixed conviction behind it.

Market Implications and Positioning

Looking at broader market implications, the euro dropped significantly after falling below the 100-hour moving average, hitting 1.17163. This breakout indicates a desire to test lower levels. A return to higher levels will be challenging, especially with sellers appearing around 1.1750. A clear rise above these resistance points would suggest a retest of previous highs. For the yen, dollar buyers have pushed past key moving averages, creating a bullish outlook. The 145.47 level will be crucial to see if this momentum continues. It is unusual to see both moving averages overcome without some profit-taking, which warrants close attention. The pound looks fragile after falling below support. While it found initial support, the current situation is uncertain. The next support level is at 1.35292, and attention will likely shift there if upward attempts fail between 1.3615 and 1.3633. Broader risk sentiment, along with any wage or inflation signals from the UK, could also impact this currency. The franc has shown stable movement. There has been interest around the 0.8000 level for a few sessions. The breakout above trend markers, along with its proximity to resistance, positions this pair aggressively. If momentum stays above 0.8002, buyers might regain control. However, a drop below 0.7957 would dampen this bullish outlook. We will watch closely for reactions at these highs. In practical terms, macro data is influencing directions across pairs. Some respond closely to technical points like moving averages, while others seem more fluid. What’s important now is how upcoming catalysts will confirm or challenge these initial trends. Trading strategies should be more tactical. When mixed reports occur, it’s better to expect reversals rather than strong trends. It’s wise to avoid positioning too far above resistance without confirmation, or committing to breakdowns while charts remain within range. Create your live VT Markets account and start trading now.

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