Stuck 100 Pips, EUR/USD Stunned by NFP 'Slap'!

<p>&nbsp;The United States (US) NFP employment data report published in the New York session last Friday has shaken the market, seeing the US dollar significantly depreciate drastically.</p><p><br /></p><p>Looking at the report, the increase in jobs in June was the lowest in more than 2 years, which was 209,000 compared to 306,000 in the previous month which was updated downward.</p><p><br /></p><p>Missing the preliminary guidance by ADP data, investors judged the NFP report to have declined for the past month has caused the US dollar to continue to weaken assuming monetary policy tightening measures by the Federal Reserve (Fed) return to be difficult.</p><p><br /></p><p>However, market analysts still believe the Fed will continue to raise interest rates. US inflation data will be the next indicator this week.</p><p><br /></p><p><br /></p><p><br /></p><p>Observing the price movement on the chart of the EUR/USD currency pair, the price has jumped significantly signaling a change in the direction of the previous movement trend.</p><p><br /></p><p>On Friday, investors were ready when the price started to move above the Moving Average 50 (MA50) support level on the 1-hour time frame of the chart.</p><p><br /></p><p>After briefly testing that support level around 1.08700, the price then surged higher following the reaction to the published NFP report.</p><p><br /></p><p>With a daily increase of around 100 pips, the price has managed to reach a high of 1.09700 before slowly closing the last trading session around it.</p><p><br /></p><p><br /></p><p>Following the opening of the market earlier this week, prices are still slowing at the height reached while investors are still assessing the impact of last week's movements.</p><p><br /></p><p>If the surge momentum is still maintained, the price will continue to rise to the concentration level of 1.10000.</p><p><br /></p><p>The level that was the previous price resistance will be tested and the price will record the latest 10-week high if it succeeds in crossing it.</p><p><br /></p><p>The target for a higher increase is towards the zone around 1.107000 before moving to 1.12000.</p><p><br /></p><p>However, if prices plunge again this week, a break below the 1.09000 zone will strengthen expectations for further price falls.</p><p><br /></p><p>Last week's lows could be re-hit before price continues its decline to the 1.08000 concentration zone.</p>