EUR/USD Under Heavy Selling Pressure: Strong US Employment Data Sends the Euro Below 1.1150

Forex

Summary:

On 6 November 2026, EUR/USD experienced a significant bearish reversal as stronger-than-expected US employment figures triggered renewed demand for the US dollar....

SELL EURUSD

EXP

TRADING

1.11500

Entry Price

1.11050

1.11900

1.11411 -0.00764 -0.68%

0.0

Pips

Flat

1.11050

Exit Price

1.11500

Entry Price

1.11900

Market Overview

The primary catalyst behind the latest EUR/USD decline is the unexpected strength of the US labour market. October Nonfarm Payrolls increased by 165,000, significantly exceeding market expectations of 65,000. Furthermore, September employment growth was revised upwards from 29,000 to 60,000, while the unemployment rate declined from 4.2% to 4.1%. Average hourly earnings also increased by 0.4% month-on-month, exceeding the 0.3% forecast. These figures collectively indicate that the US economy continues to demonstrate considerable labour-market resilience.

This development has important implications for Federal Reserve policy. Strong employment and wage growth reduce the urgency for monetary easing, potentially keeping US interest rates restrictive for longer. Consequently, Treasury yields and dollar demand could remain supported, creating additional pressure on EUR/USD.

Meanwhile, the euro is facing its own fundamental challenges. Weak Eurozone retail sales and cautious commentary from European Central Bank officials have limited the currency's ability to attract buyers. The divergence between relatively resilient US economic activity and weaker European consumption creates an unfavourable environment for the euro.

Another contributing factor is the broader global risk-off environment. The sell-off in technology shares has encouraged investors to increase liquidity exposure and seek relatively defensive assets, benefiting the US dollar. Reuters reported that the dollar strengthened as losses spread across Asian and European equity markets.

Market Sentiment

Investor sentiment has shifted decisively towards the US dollar following the employment report. The significance of the latest decline is not simply its magnitude but the speed at which EUR/USD surrendered its previous recovery.

The pair had attempted to establish a stronger bullish structure after recovering towards 1.1273 on 4 November. However, buyers failed to sustain that advance. The subsequent rejection, combined with the break below 1.1200, suggests that the recovery was unable to attract sufficient follow-through demand. Daily historical data confirms that EUR/USD reached approximately 1.1235 before falling towards 1.1168 on 6 November.

From a positioning perspective, the strong employment figures may encourage traders to reduce long EUR/USD exposure and increase dollar positions. Importantly, the market has already reacted substantially to the news, meaning that chasing the decline at current prices could expose sellers to a temporary technical rebound.

This is precisely why 1.1150 is an interesting entry. Rather than selling after an extended bearish candle, the strategy anticipates a retracement towards a previously important support area. If buyers fail to reclaim that region, the former support may become a supply zone where sellers re-enter the market.

Technical Analysis

EUR/USD Under Heavy Selling Pressure: Strong US Employment Data Sends the Euro Below 1.1150_1

EUR/USD currently exhibits a bearish short-term structure, with lower highs and lower lows developing after rejection around 1.1270. The immediate technical reference is 1.1150–1.1155, while 1.1128 and 1.1105 represent subsequent downside objectives. Resistance is concentrated around 1.1195–1.1205, with 1.1225 providing a more important invalidation reference.

Bollinger Bands (20,0,2): The preferred SELL confirmation is a corrective rebound towards the middle or upper band, followed by rejection and a bearish candle close. Following the latest sharp decline, the bands may remain expanded, indicating elevated volatility. If price continues trading below the middle band, bearish momentum remains dominant. However, an immediate sell signal near the lower band should be treated cautiously because short-term mean reversion could develop.

Ichimoku Kinko Hyo (9,26,52): The bearish scenario would gain credibility if price remains beneath the Kumo cloud, with Tenkan-sen positioned below Kijun-sen. A recovery towards the Kijun-sen followed by rejection would offer a potential continuation entry. Conversely, a sustained M15 close above the cloud would suggest that selling momentum is weakening.

Stochastic (5,3,3): Given the aggressive decline following the employment report, the indicator may enter oversold territory. The preferred opportunity is a temporary rebound followed by a bearish crossover from above 80. This would provide stronger confirmation that the corrective movement is exhausting itself. An oversold reading alone should not be interpreted as an immediate reversal signal.

The overall technical outlook favours further downside while EUR/USD remains below 1.1205. A successful rejection around 1.1150 could expose 1.1128 initially, followed by 1.1105. A sustained recovery above 1.1205 would weaken the bearish continuation scenario.

Trade Recommendation

Entry: 1.11500

Take Profit: 1.11050

Stop Loss: 1.11900

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education

Data