{"id":437545,"date":"2026-09-04T20:33:32","date_gmt":"2026-09-04T13:33:32","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/usd-technicals-us-dollar-has-a-mixed-reaction-to-blockbuster-us-jobs-report-437545\/"},"modified":"2026-09-04T20:33:32","modified_gmt":"2026-09-04T13:33:32","slug":"usd-technicals-us-dollar-has-a-mixed-reaction-to-blockbuster-us-jobs-report","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/usd-technicals-us-dollar-has-a-mixed-reaction-to-blockbuster-us-jobs-report-437545\/","title":{"rendered":"USD Technicals: US dollar has a mixed reaction to blockbuster US jobs report."},"content":{"rendered":"
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The US jobs report was a blockbuster and, fundamentally, should have sent the US dollar sharply higher. Initially, that is exactly what happened against several major currencies, including the JPY, EUR, GBP and CAD.<\/p>\n

However, the expected effect does not always follow the fundamental cause\u2014at least not for long. One reason is that price may run into an important technical level where traders are willing to take profits, enter in the opposite direction or define their risk. In those situations, the technicals can stop\u2014or even reverse\u2014the initial move.<\/p>\n

In the video above, I examine the market\u2019s reaction to the US jobs report in the USDJPY, EURUSD, GBPUSD and USDCAD. Despite the strength of the data, the price action across those pairs has been mixed.<\/p>\n

For the USDJPY, the price initially moved higher following the report. However, the rally stalled near 156.69, where the 38.2% retracement of yesterday\u2019s decline provided resistance.<\/p>\n

That retracement level was an important hurdle. A sustained move above it would have shown that buyers were beginning to take back more control. Instead, the price could not break through the resistance, the buying momentum faded and sellers pushed the pair sharply lower toward the low for the day\u2014and the low for the week\u2014near 155.285.<\/p>\n

The lesson is straightforward: strong economic data may give buyers a reason to act, but the price must still break through the technical levels standing in the way. When it cannot, disappointed buyers may exit and sellers can regain control.<\/p>\n

For the EURUSD, the pair initially moved lower as the dollar strengthened. The price fell below its 100-hour moving average at 1.1602, giving sellers greater control. However, the decline stalled near the next important support level\u2014the 38.2% retracement of the move up from the late-July low at 1.1573.<\/p>\n

The inability to break below that retracement level encouraged buyers to step back in, leading to a rebound. The 100-hour moving average at 1.1602 now becomes a key barometer. If the price remains below it, sellers retain the short-term advantage. If the price moves back above it, sellers may become disappointed, potentially leading to additional short covering and a further move higher.<\/p>\n

The GBPUSD followed a similar pattern. It initially moved lower as the dollar strengthened, but the decline stalled before reaching the next support area between 1.3473 and 1.3480. The low reached 1.3484\u2014just above that support zone.<\/p>\n

When sellers could not push the price through the next downside target, some began taking profits and buyers entered against the support. That sent the pair back toward the 100-hour moving average and the broken 38.2% retracement near 1.35206.<\/p>\n

That area is now close resistance and the next important decision point. Stay below 1.35206, and sellers remain in play with the potential for another rotation toward 1.3473\u20131.3480. Move back above it, and the failed downside break could lead to more short covering.<\/p>\n

The USDCAD has been the exception. The combination of a stronger-than-expected US jobs report and a weaker Canadian employment report gave the pair two fundamental reasons to move higher. Unlike the other currency pairs, the USDCAD has maintained its upside momentum.<\/p>\n

Technically, the 200-day moving average near 1.3836 is now the key risk-defining level. Staying above that moving average keeps the bias more bullish today and going forward. A move back below it would weaken the bullish technical picture and suggest that buyers are losing some control.<\/p>\n

Overall, the strong US jobs report was the cause, but the effect across the foreign-exchange market has been mixed. The technical levels played a major role in determining whether the initial dollar move continued, stalled or reversed.<\/p>\n

For traders, that is an important lesson. Fundamentals can provide the reason for a move, but price action and technical levels show whether buyers or sellers are actually maintaining control. Knowing those levels allows traders to define their bias, manage their risk and avoid being surprised when the expected effect does not follow the fundamental cause.<\/p>\n

This article was written by Greg Michalowski at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

The US jobs report was a blockbuster and, fundamentally, should have sent the US dollar sharply higher. Initially, that is exactly what happened against several major currencies, including the JPY, EUR, GBP…<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-437545","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/437545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=437545"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/437545\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=437545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=437545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=437545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}