The US dollar soared after January’s jobs report far exceeded estimates. The pair came to a halt in the supply zone around 1.1000 from last April’s sell-off. A drop below the bullish engulfing candle at 1.0890 was already a sign of weakness with the euro struggling to hold on to recent gains. A sharp fall below 1.0850 (20-day SMA) and 1.0800 indicates that the bulls have bailed out. 1.0770 on the 30-day SMA is the next level to see whether the price would stabilise, and 1.0870 is a fresh resistance in case of a bounce.
