EUR/USD Bounces Back as Dollar Fails to Hold Gains
The EUR/USD pair rebounded after a volatile reaction to the latest US employment numbers. The unexpected job additions caused a sharp drop in the currency pair, but the dollar's failure to hold gains allowed the euro to recover some losses.
The exchange rate is currently caught between the 100-day and 200-day moving averages, with the latter capping upside at around 1.1634. A break above this level could lead to further gains towards 1.1700 and 1.1800, but a drop below the 100-day average would expose support levels at 1.1564 and 1.1508.
Momentum indicators suggest a cautious bullish outlook, with the Relative Strength Index staying above the neutral midpoint of 50. The European Central Bank's decision to delay further rate cuts could also support the euro, making buying out-of-the-money call options targeting the mentioned levels attractive for traders.