U.S. Dollar Dives As Non Farm Payrolls Drop to 22,000: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Lows As Non Farm Payrolls Miss Estimates

U.S. Dollar Index is losing ground as traders focus on the disappointing Non Farm Payrolls report. The report showed that the U.S. economy added just +22,000 jobs in August, compared to analyst forecast of +75,000.

The nearest support level for U.S. Dollar Index is located in the 97.10 – 97.30 range. In case U.S. Dollar Index declines below this level, it will head towards the next support at 96.40 – 96.55.

EUR/USD Tests The 1.1750 Level

EUR/USD rallied as traders reacted to U.S. job market data. In the EU, traders focused on the Factory Orders report from Germany. The report showed that Factory Orders declined by -2.9% month-over-month in July, compared to analyst forecast of +0.5%.

A move above the 1.1750 level will open the way to the test of the next resistance level at 1.1785 – 1.1800.

GBP/USD Gains Ground As Traders React To U.S. Job Market Data

GBP/USD moved higher, supported by the better-than-expected UK Retail Sales report. The report showed that UK Retail Sales increased by +0.6% month-over-month in July, compared to analyst consensus of +0.2%.

If GBP/USD climbs above the 1.3550 level, it will head towards the resistance at 1.3585 – 1.3600.

USD/CAD Rebounds From Session Lows

USD/CAD is mostly flat as traders focus on the strong pullback in the oil markets. Other commodity-related currencies gained strong upside momentum in today’s trading session.

A successful test of the resistance at 1.3845 – 1.3860 will open the way to the test of the next resistance level at 1.3910 – 1.3925.

USD/JPY Retreats As Treasury Yields Fall

USD/JPY is losing ground as traders focus on the strong pullback in Treasury yields, which was triggered by the weak Non Farm Payrolls report.

If USD/JPY manages to settle below the 147.00 level, it will gain additional downside momentum and move towards the 146.00 level. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

For a look at all of today’s economic events, check out our economic calendar.