The US labor market report for December is solid. Employment in the non-agricultural sector increased by as much as 312,000, against a consensus at 184,000, and even against the most optimistic forecasts (225,000). This is the largest monthly increase since February of last year and suggests that the US economy has no problems with creating jobs. The global investors also got evidence of rising wage pressure, as salaries increased by 0.4% m / m, by 0.1 percentage point above forecasts. The unexpected increase in the unemployment rate at first glance looks negative, but it can also be evidence of the return of the unemployed to active job search, which would indicate a positive perception of the state of the economy.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market has a positive response to the data. EUR / USD in the first reaction fell by 40 pips to 1.1360, but already made up half of this move and is currently trading around the level of 1.1421, so the move down was only a spike. If the technical resistance at 1.1421 is clearly violated, then the next target for bulls is seen at the level of 1.1442 and 1.1456. The momentum remains positive, but it is not pointing vertically to the north yet.
