The report here was softer than estimated, with prices paid also easing back from April. The positive for the dollar? Employment conditions are still holding up well but that’s about it. Otherwise, it was a pretty straightforward take on the report. The greenback fell as a result and we’re starting to see key technical levels crack now.
In the case of EUR/USD, the pair is now moving up to its highest levels since March. The daily resistance from the April high of 1.0885 looks to be broken. And that is allowing more breathing room for the pair to roam towards 1.0950 next.
Besides more US data this week, the ECB decision will be one to watch on Thursday.
Meanwhile, USD/JPY also broke lower in a push below near-term support around 156.57-62. That resulted in a further downside draft towards the 156.00 mark. But buyers are hanging on at the level with bids holding for now.
Looking over to other dollar pairs, GBP/USD is also up to its highest levels since March above 1.2800 with the March high at 1.2893 a potential target. Then, there is USD/CHF which finally broke key support at the 0.9000 level after two months of consolidation. The pair now looks to be eyeing a push towards its 100-day moving average of 0.8930 next.
It looks like the June seasonal trend is off to a good start at least.
As for the commodity currencies, AUD/USD is nearing key resistance at 0.6700 again while NZD/USD is also inching closer towards key resistance at 0.6200 currently. Those will be two big levels to watch and could lead to stronger breaks in the short-term.
This article was written by Justin Low at www.forexlive.com.
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