Dowjones index (US 30) struggles for support
The Dowjones index fell as investors assessed the fallout from a weak jobs report. On the chart, the price has pulled back towards 40000, and a series of lower lows with limited upside indicates that buyers have trimmed their exposure. With the RSI stuck in an oversold area, 41000 is the level to see if the bulls make their way back. 40600 is a fresh resistance in case of a bounce as traders look ahead to this week’s inflation data.
EURUSD grinds major support
The euro retreated as a mixed NFP resulted in the pair fluctuating over 100 pips. On the chart, the price has been grinding the recent bottom below 1.1100, which is a critical level to keep the bullish momentum intact. A bearish breakout would trigger a liquidation of positions of those who bought the dip, causing a correction towards 1.0900. Bulls will need to lift offers around 1.1150 to ease the pressure, then 1.1200 is the level to clear before a sustained rebound can happen.
GBPUSD awaits breakout
Sterling also struggled against the greenback after a choppy job reading. The pair is looking to consolidate its base in the critical demand zone 1.3100-1.3130. 1.3200 from a previously faded bounce is a significant resistance to clear to shake out bears and to open the door towards the recent peak at 1.3250. Failing that, sellers could see it as a confirmation that the directional bias is still down and would double down on their bets. A drop below 1.3050 would make the pound more vulnerable to an extended sell-off below 1.2900.
