Dollar drops further on Friday despite NFP. (Pivot Orderbook analysis)

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• Dollar drops further on Friday despite NFP.
• After a busy week, now attention turns to US elections and CPI.
• EURUSD still down for the week, but reversal is euro positive.

The pair currently trades last at 0.9931.

The previous day high was 0.984 while the previous day low was 0.973. The daily 38.2% Fib levels comes at 0.9772, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9798, expected to provide support.

The EURUSD rose further on Friday and hit a fresh two-day high at 0.9940, before pulling back to the 0.9900 area. The greenback is sharply lower across the board despite a better-than-expected NFP.

The employment numbers showed the US added 261K new jobs in October, above the 200K of market consensus. After an initial positive reaction, the Dollar then tumbled, and so far, it is having the worst day in weeks. An improvement in market sentiment contributes to weakening the Dollar amid job numbers and expectations that China will ease some of its Zero-Covid policies.

Next week, attention would be on US CPI numbers due on Thursday that should have a large impact on Fed policy expectations. The mid-term election will be on Tuesday.

“The EURUSD pair has spent the week below parity and posted a lower low and a lower high, a sign that bears are back. Profit-taking ahead of the weekend helped the pair to bounce on Friday, but the dominant bearish trend remains firmly in place”, explained Valeria Bednarik, Chief Analyst at FXStreet.

Bednarik warns the daily chart shows the bearish continuation is in doubt. “The EURUSD pair recovered above a directionless 20 SMA, which provides immediate support at around 0.9830, and seems poised to extend its recovery towards the next relevant dynamic resistance level, a bearish 100 SMA currently at around 1.0050.”

The pair is about to end the week with marginal losses and far from the weekly low, a positive sign for euro bulls. Still, it remains far from obtaining a weekly close the 20-week SMA at 1.0040.

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.9931 at the time of writing. Pair opened at 0.9749 and is trading with a change of 1.87 % .

The pair is trading above its 20 Daily moving average @ 0.9833, above its 50 Daily moving average @ 0.9879 , below its 100 Daily moving average @ 1.0058 and below its 200 Daily moving average @ 1.0476

The previous day high was 0.984 while the previous day low was 0.973. The daily 38.2% Fib levels comes at 0.9772, expected to provide support. Similarly, the daily 61.8% fib level is at 0.9798, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.9706, 0.9663, 0.9596
• Pivot resistance is noted at 0.9816, 0.9882, 0.9925

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