EUR/USD Trades with High Volatility after ECB Rate Cut and U.S. Employment Report

EUR/USD rose immediately after ECB announced a rate cut today but then began to fall sharply before the reports on the U.S. employment sector were released. Now it’s trading near 1.3360 — above its daily open level at 1.3312.
ECB decided to cut the interest rate by 0.25% today and now the Eurozone’s benchmark rate is at 1%.
Initial jobless claims were at 601k last week — down from 635k reported a week before. They were expected to remain at 635k level.
Nonfarm business productivity growth was reported at 0.8% for the first quarter of 2009 after posting 0.6% change in the fourth quarter of 2008 (revised down from -0.4%). This indicator was expected to come out near 0.6% today.

EUR/USD Rallies to Monthly High after Nonfarm Payrolls

EUR/USD rose for a second day today and reached the highest value in more than a month after the U.S. employment declined at a less than expected rate. Traders felt more confidence in the high-yielding assets and turned to stock and euro buying, dumping the low-yielding greenback. EUR/USD is now trading near 1.3488.
Nonfarm payrolls decreased by 539k in April instead of the expected 600k. In March they were down by 699k. The overall unemployment rate rose from 8.5% to 8.9% as expected.
Wholesale inventories were down by 1.6% in March, following 1.7% drop in February. Forecasts by the economic strategists showed -1% change.

Forex Technical Analysis for 05/11—05/15 Week

Floor Pivot Points
Pair	3rd Sup	2nd Sup	1st Sup	Pivot	1st Res	2nd Res	3rd Res
EUR/USD	1.2611	1.2788	1.3031	1.3208	1.3451	1.3629	1.3872
GBP/USD	1.4208	1.4361	1.4641	1.4794	1.5074	1.5227	1.5507
USD/JPY	92.66	94.14	96.62	98.10	100.58	102.06	104.54
EUR/JPY	118.52	121.44	126.48	129.40	134.44	137.36	142.40

Woodie’s Pivot Points
Pair	2nd Sup	1st Sup	Pivot	1st Res	2nd Res
EUR/USD	1.2804	1.3064	1.3225	1.3485	1.3645
GBP/USD	1.4393	1.4705	1.4826	1.5138	1.5259
USD/JPY	94.39	97.12	98.35	101.08	102.31
EUR/JPY	121.97	127.53	129.93	135.49	137.89

Camarilla Pivot Points
Pair	4th Sup	3rd Sup	2nd Sup	1st Sup	1st Res	2nd Res	3rd Res	4th Res
EUR/USD	1.3043	1.3159	1.3197	1.3236	1.3313	1.3351	1.3390	1.3506
GBP/USD	1.4683	1.4802	1.4842	1.4882	1.4961	1.5001	1.5040	1.5159
USD/JPY	96.92	98.01	98.38	98.74	99.46	99.83	100.19	101.28
EUR/JPY	127.13	129.32	130.05	130.78	132.24	132.97	133.70	135.89

Tom DeMark’s Pivot Points
Pair	EUR/USD	GBP/USD	USD/JPY	EUR/JPY
Resistance	1.3330	1.4934	99.34	131.92
Support	1.2909	1.4501	95.38	123.96

Fibonacci Retracement Levels
Pairs	EUR/USD	GBP/USD	USD/JPY	EUR/JPY
100.0%	1.3385	1.4947	99.57	132.33
61.8%	1.3225	1.4782	98.06	129.29
50.0%	1.3175	1.4731	97.59	128.35
38.2%	1.3125	1.4679	97.13	127.41
23.6%	1.3064	1.4616	96.55	126.25
0.0%	1.2965	1.4514	95.62	124.37