Handplanegoodness.com — The US dollar bounced on Friday, last weekend, fueled by an improvement in the US work market. The US Department of Labor announced January non-Farm payrolls of 257,000, surpassing economists’ forecasts of 236,000.
Normal hourly earnings in the US rose to 0.5% contrasted with the previous estimate of 0.3%. While the joblessness rate information was released at 5.7% for the January time frame, it was no better than the previous period’s 5.6%.
Despite a slight increase, the US joblessness rate still remains in a bearish trend. A string of US business information showed solid work development, with wages bouncing back sharply.
More than 1 million jobs were available in the last quarter, the first time since late 1997. It’s also been the focus of the market on speculation about the benchmark interest rate that the Fed is supposed to start raising in mid-2015.
The strengthening of the US dollar suddenly debilitated its opponent money, the Euro. The euro fell 1600 pips after the release of US Labor information on Friday.
The euro was also under selling tension in the midst of concerns about a cutoff time for the recently chosen Greek government for secure an extension to its bailout.
Greece’s Finance Minister, Yanis Varoufakis, won’t consent to Wednesday’s gathering with the eurozone partners that keep the ongoing global bailout program set up.
Instead, Greece will seek a “span bargain” to keep Finance running until it is ready to present reforms for its new obligation program. Greece will keep on regarding commitments to its eurozone partners and creditors concurred by previous governments.
Technical Analysis
On the hourly chart (H1), Euro is moving in a triangle design until further notice. Considering the RSI marker demonstrating an expected bounce back for the Euro, the market might consider the 1.12950 level as the principal support level for now.
Euro has potential to bounce back to 1.13960 – 1.14960 in short term. A cautious break underneath 1.12950 should debilitate the euro back to 1.10940.
