NFP confuses Markets

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The eagerly awaited Non Farm Payrolls posted a drop to 216K against the forecasted 230k registering a twentieth consecutive monthly decline.

Of more concern, perhaps, was US Unemployment rate rising to 9.7% versus the expected 9.5% indicating that now one in ten Americans are out of work.

The Forex Market reacted wildly to this data with the EUR/USD rising to 1.4280 before retracting lower as shown by the last two rightmost candles in above chart.

Most leading economist state that for the economy to improve the main considerations are jobs first, jobs second and jobs third.

As such , the EUR/USD downside should prevail today resulting in key supports at 1.4195 and 1.4150 coming under pressure.

Otherwise, a bullish Stochastic crossover could lead to the EUR/USD testing its resistance level at 1.4325.