EUR/USD bounces off fresh lows, retakes 1.1850 post-NFP

• EUR/USD rebounds from lows near the 1.18 mark.
• US Non-farm Payrolls rose by 850K jobs in June.
• The unemployment rate ticked higher to 5.9%.

EUR/USD trims initial losses and regains the 1.1840/50 band in the wake of US NFP.

EUR/USD turns positive above 1.1850

EUR/USD regains the smile on Friday after the US economy created 850K jobs during June, bettering expectations for a gain of 700K jobs. The May’s reading was revised to 583K (from 559K).

Further data showed the jobless rate rose to 5.9% and the critical Average Hourly Earnings – a proxy for inflation via wages – rose 0.3% MoM and expanded 3.6% over the last twelve months. Another key gauge, the Participation Rate, remained unchanged at 61.6%.

Other than Payrolls, the final trade deficit came in at $71.20 billion for the month of May.

EUR/USD levels to watch

So far, spot is up 0.04% at 1.1851 and a break below 1.1807 (monthly low Jul.2) would target 1.1762 (78.6% Fibo of the November-January rally) and route to 1.1704 (2021 low Mar.31). On the other hand, the next resistance emerges at 1.1975 (weekly high Jun.25) followed by 1.1996 (200-day SMA) and finally 1.2000 (psychological level).