The confusion must be there among the traders and many of them must be left with nothing but losses, as the manipulation against the outcome of the U.S. job numbers happened on Friday. The euro was trading at 1.3673 before the release of NFP and unemployment rate data on Friday, where it fell by 35 points immediately as the U.S. economy managed to add more than 200,000 jobs in the month of November, which was greater than expected. Plus, the unemployment rate came down from 7.2% to a 6 year low level of 7%, but then something unusual happened.
The euro bounced back from its Friday’s pivot point 1.3626 level and went up to the 1.3706 level after gaining 70 points which was totally unbelievable as the USD was meant to become stronger. The U.S. dollar did go stronger against the Japanese yen where the USD/JPY tested and crossed the 103.02 mark, but the euro and pound, along with the Australian dollar resulted in giving losses for those who were in selling positions.
The British pound also bounced back and hit the stop losses of intra-day traders at 1.6390, but then came back down and closed below the critical support level of 1.6375 which took it under the control of short-term bears. The pair is fine to be sold as long as it remains below 1.6375. The services sector did not boost the pair up as it expanded less than expected, so bullish momentum faded away to a great extent.
Similarly, as mentioned earlier that the Aussie would test the 0.9000 level and buyers would enter there with small stop loss at 0.8975 and so they did. The pair could not break the support level of 0.8990 where bulls entered and took the pair up to 0.9105 after gaining 100 points and have managed to enter the pair in a short-term bullish range.
To contact the reporter of this story: Jonathan Millet at email@example.com