EUR-USD prediction june 4 2012

forex trading outlook today - EUR-USD prediction june 4 2012 : US nonfarm payrolls showed the US economy created 69,000 jobs in May, recording the smallest increase in a year and well below market expectations of 150,000. The unemployment rate, meanwhile, rose to 8.2% from 8.1%. April and March gains were downwardly revised. April jobs were trimmed to 77,000 from 115,000 previously estimated, while March's figure was revised to 143,000 from 154,000.

The dollar initially strengthened on the back of disappointing nonfarm payrolls, but as participants consider the risks of the Fed launching another round of bond purchasing (QE3), the US currency lost momentum and reversed gains.

EUR/USD bounced strongly after hitting a fresh 23-month low of 1.2286, climbing more than 120 pips within the last minutes and turning intraday positive. EUR/USD reached a 3-day high of 1.2454, and currently quotes at the 1.2450 area, now up 0.7% on the day.

In terms of technical levels, next resistances could be found at 1.2430, 1.2460 and 1.2500, while on the downside supports are seen at 1.2360, 1.2320 and 1.2285.

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