After yesterday’s massive ECB-induced moves across all markets, traders were a bit shell-shocked heading into the always important Non-Farm Payrolls report. Today’s jobs report was even more highly anticipated than usual because it represented the last major US economic release ahead of the Fed’s December monetary policy meeting, where the central bank is mulling its first interest rate hike in nearly a decade.

The US economy created 211k jobs in the month of November, slightly better than the 201k anticipated. Furthermore, revisions added 35k jobs to the previous two months’ reports.

Prior to Thursday’s ECB announcement, EUR/USD had dropped steadily to approach its downside target of 1.0500. After the ECB, the currency pair rose rapidly above 1.0800 resistance to hit its 50-day moving average. On Friday, immediately after the NFP results, EUR/USD fluctuated around this 50-day moving average but generally remained strong, maintaining Thursday’s gains. Despite the spike for EUR/USD, a divergence in monetary policy continues to exist between the ECB and Fed. The spike occurred primarily because the market was surprised by the rather tepid actions of the ECB. Therefore, as long as some form of this divergence remains in play, EUR/USD should continue to be pressured over the longer term. On any further short-term rebound, major resistance resides directly above, around the 200-day moving average and the key 1.1100 resistance level. To the downside, any sustained return below 1.0800 should see a resumption of the bearish bias for EUR/USD, with the key downside target remaining at the noted 1.0500 support level. Longer-term, further downside targets reside at 1.0200 and parity (1.0000).