EUR/USD ticks up to session highs at 1.1580 as US payrolls disappoint

• The euro bounces up from 1.1535 lows to reach session highs near 1.1580.
• The dollar loses momentum as US employment data misses axpectations.
• EUR/USD: Above crucial support at 1.1495 – SocGen.

The euro is attempting to bounce up from 14-month lows at 1.1535 reaching session highs at 1.1580 favored by a weaker than expected US Non-Farm Payrolls report. The pair, however, remains on the defensive, after having depreciated about 0.5% in a three-day decline.

The dollar eases as US jobs growth misses expectations

The greenback is pulling back against its main peers on Friday, weighed by a weaker than expected increase in US private employment. According to data released by the Labor Department, Non-Farm Payrolls increased by 194,000 in September, well below market expectations of nearly 500,000 new jobs.

Furthermore, the unemployment rate declined to 4.8%, from 5.2% in August, while the average hourly earnings increased 0.6% on the month, and 4.6% year-on-year.

The EUR/USD, however, remains little changed, near recent lows as the employment report is unlikely to deter the Federal Reserve from starting to roll back its monetary stimulus program as soon as in November. Fed Chairman Jerome Powell confirmed last month that a “decent” employment report in September would be sufficient to start reducing bonds purchases.

EUR/USD: Support at 1.1495 is crucial for a potential recovery – SocGen

The FX Analysis team observe the pair nearing n important support zone, at 1.1495, seen as crucial for a potential rebound towards 1.1665: “EUR/USD is probing the weekly Ichimoku cloud and is close to the peak of March 2020 at 1.1495. Defending this can result in a rebound however 1.1665 could cap (…) Below 1.1495, next support could be at 1.1450 and projections of 1.1380.”

Technical levels to watch