EUR/USD takes back most post-NFP losses

• EUR/USD recovers ground during the New York session
• The pair remains on track to post its seventh weekly gain in a row

EUR/USD has managed to trim intraday losses during the American afternoon as the dollar surrendered some of its post-NFP gains.

EUR/USD bounced from the 200-hour SMA at 1.2408 and rose nearly 80 pips over the last hours to currently trade at the 1.2480 area, just 0.25% below its opening price, after being 0.83% down at one point.

Despite EUR/USD remains on track for a daily loss, it is headed for its seventh weekly gain in row, nearby multi-year peaks scored on Jan 25.

US jobs report helps the dollar, but gains proved short-lived

The greenback strengthened across the board after the US nonfarm payrolls report showed the economy added 200,000 new jobs in January, above the 180,000 expected and following a revised 160,000 job gain in December. The unemployment rate remained flat at 4.1% as expected. In addition, the key average hourly earnings – a proxy for wage inflation - rose at an annualized 2.9%, above initial forecasts.

Stronger-than-expected data also pushed the 10-year US Treasury yields to multi-year highs as it fueled expectations of a March rate hike by the Fed.

EUR/USD levels to watch

In terms of technical levels, EUR/USD next resistances could be found at 1.2537 (3-year high scored Jan 25) and then 1.2600 (psychological level). On the downside, supports are seen at 1.2408 (intraday low), 1.2396 (10-day SMA) and 1.2334 (Jan 30 low).