Forex: EUR/USD pulls back and jumps to 1.3150

FXstreet.com (Barcelona) - A first jump to 1.3147 gave way to a +100-pip plunge to 1.3034 low (around weekly opening price) as first reaction to the better than expected US NFP, including a revision higher of the March figure. Support at those lows, coupled with the Apr-30 low at 1.3055, made the EUR/USD pull back and encounter 1.3150. A volatile Friday ending with weekly gains after last week’s test of the 1.3000 territory and 1.2956 low.

The US nonfarm payrolls surprised investors as the March weakness was revised higher by 50K, from 88K to 138K. Also, April data came in above market consensus, at 165K instead of 145K.

Market consensus was already suggesting a contraction, but by -2.6% in March, not what actual Factory Orders data showed: -4.0%. Also, the February figure was revised lower, from -3.0% to -1.9%. The non-manufacturing PMI by ISM fell from 54.5 to 53.1 in April, disappointing investors that were expecting a figure around 54.0.

Roboforex.com analyst Igor Sayadov was expecting the rebound to 1.3140 that just happened, but he forecasts a new slide: “Today, the price may return to the level of 1.3140 and then continue falling down towards the target at 1.2940. Later, in our opinion, the pair may start a new correction to return to the level of 1.3040 once again and then continue moving downwards to reach the target at 1.2880”, he wrote.