The dollar dives 0.9% on the day and hits one-month lows at 146.55. (Pivot Orderbook analysis)

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• The dollar dives 0.9% on the day and hits one-month lows at 146.55.
• US payrolls increase, but unemployment rises, and salaries slow down.
• USDJPY: More likely to peak at 155 than at 160 – MUFG.

The pair currently trades last at 147.08.

The previous day high was 148.45 while the previous day low was 147.11. The daily 38.2% Fib levels comes at 147.94, expected to provide resistance. Similarly, the daily 61.8% fib level is at 147.62, expected to provide resistance.

The US dollar is trying to return above 147.00 in the US afternoon trading session, to trim losses after having lost nearly 0.9% on the day, reaching one-month lows at 146.55.

The greenback accelerated its downtrend on Friday, after the release of a mixed US NFP report. Employment creation remains robust, with non-farm private payrolls increasing by 261K in October, beating expectations of 200K and September’s figures revised up to 315K, from the previously estimated 4 K.

On the other hand, the unemployment rate has risen to 3.7% from 3.5% in September, above the consensus of 3.6%, while hourly earnings increased by 4,7% in October from 5% in September. These figures suggest that labor market conditions might be starting to ease and have revived the possibility of a shorter rate hike in December.

From a wider perspective, Analysts at MUFG anticipate that the USDJPY peak might not be far off: “We forecast a near-term USDJPY ceiling of 155 given that it has already passed 150 once, is still hovering around 148, and considering the speed of its ascent over the last six-plus months (…) The 2 April 1990 high of 160.35 could come into view if the Fed steps up its communication with the market and a terminal rate of 5.5% to 6% comes into view, but we do not expect this at present.”

Technical Levels: Supports and Resistances

EURUSD currently trading at 147.08 at the time of writing. Pair opened at 148.06 and is trading with a change of -0.66 % .

The pair is trading below its 20 Daily moving average @ 147.78, above its 50 Daily moving average @ 144.77 , above its 100 Daily moving average @ 140.25 and above its 200 Daily moving average @ 131.86

The previous day high was 148.45 while the previous day low was 147.11. The daily 38.2% Fib levels comes at 147.94, expected to provide resistance. Similarly, the daily 61.8% fib level is at 147.62, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 147.3, 146.54, 145.96
• Pivot resistance is noted at 148.64, 149.21, 149.97

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