EUR/USD finds support and stabilizes around 1.1150 in thin trading

EUR/USD has stabilized around the 1.1150 level after a 50-pip drop, amid thin trading conditions, with most US banks and federal institutions closed for the Columbus Day holiday.

The greenback edged higher on Monday and dragged EUR/USD from above 1.1200 to a low of 1.1147, as investors looked past a disappointing nonfarm payroll report. Having spent the last hours in a tight range, EUR/USD is currently trading at 1.1150, 0.4% lower on the day.

The dollar weakened on Friday as knee-jerk reaction to NFP as the Labor Department reported a 156K job gain in September, the smallest since May and below expectations of a 175K increase. However, the disappointing report was not seen as preventing the Fed from raising interest rates once again this year.

EUR/USD technical levels

In terms of technical levels, immediate supports are seen at  1.1104/00 (Oct 7 low/psychological level), 1.1070 (Aug 9 low) and 1.1045 (Aug 5 low). On the other hand, resistances line up at 1.1206 (50-day SMA), 1.1250/58 (Sep 30 high/Sep 27 high), 1.1283 (Sep 15 high) and 1.1326 (Sep 8 high).