The U.S. dollar rebounded strongly after the upbeat jobs report in the U.S. which showed that non-farm payrolls plunged by 11,000 in November, above estimates; marking the best record since December 2007, while unemployment rate has surprisingly retreated to 10.0% from 10.2%.
The stellar news aroused speculations that the FED may raise interest rate soon after the progress seen, thereby enhancing demand on the dollar. The dollar index, which tracks the dollar movements versus a basket of major currencies, spiked to a high of 75.42 from a low of 74.59. On the other hand, the Japanese yen continued its plummet against majors after the stellar report which dampened demand on the yen as a refuge.
With regard to the euro-dollar pair, it is showing a sharp decline on the daily and 4-hour charts. The euro reversed back from the high of 1.5090 to 1.4899 close to the low of 1.897, losing over 180 pips after the report. The 16-nation currency has corrected to the downside after reaching near 16-month low versus the greenback this week and it fell rapidly after breaching the strong support at 1.5000. Now, the pair is expected to face the next support at 1.4870 while the next resistance will be at 1.4920.
As for the sterling-dollar pair, it is falling tremendously on the 4-hour and 1-hour charts, while it is showing a slight decline on the daily charts after retracing the earlier gains. The United Kingdom lacked fundamentals today and therefore it traced the general trend in the market. So far, the pound is trading at 1.6530 setting a high of 1.6673 and a low of 1.6519; while the coming support for the pair is seen at 1.6500 and the resistance is spotted at 1.6557.
Relative to the dollar-yen pair, it is inclining for the fourth day on the daily charts. The yen continued its downfall versus the dollar after the labor report; however, it is fighting to remain above the strong resistance level at 89.73 which represents 38.2% Fibonacci retracement to the downside trend that started on August 10. Now, the pair is trading around 89.86 after hitting a high of 89.97 and a low of 87.97; while the pair is currently facing the coming support level at 89.50, while resistance is spotted at 90.20.