EUR/USD Extends Recovery as Markets Reassess Weak US Jobs Data

The EUR/USD currency pair has continued its recovery trend after last week's release of weak US jobs data. The July Non-Farm Payrolls report showed a loss of 23,000 jobs, with government employment declining by approximately 53,000 and private sector hiring still adding around 30,000 jobs.

Although the headline figure was negative, market participants are questioning whether this truly reflects a broad deterioration in the US labor market or is largely due to temporary factors. As a result, the US dollar remains under pressure in the short term, providing support for major currencies like the euro.

From a technical perspective, EUR/USD remains within a broader bearish trend on the daily chart. However, the recent rally suggests that the pair is currently undergoing a technical pullback following several months of downside pressure. Price has successfully moved above the 50-day Simple Moving Average, indicating improving bullish momentum in the short term.