Markets react sharply after the major NFP miss

[Redator]

Markets are getting ignited by this morning's Non-Farm Payrolls report – You can access the details of the report right here.

For a quick recap, the 73K vs 110K expectations got combined with some huge downward revisions to the previous month's number (14K vs 147K announced).

Equities which had been trading in paradise territory are facing a reality check, and the US Dollar which also saw a strong relief is getting sent right back down.

On this Market Reaction piece, we will take a look at a few Major pairs, Gold, and some Equity indices to spot some key levels for upcoming trading.

As August begins with a hot start, it is essential to get ready – We should see some blazing hot volatility.

Read More: Dollar’s Rebound: Tactical Recovery or Structural Decline?

Technical Levels for some of the most traded instruments

EUR/USD 4H Chart

EUR/USD 4H Chart, August 1, 2025 – Source: TradingView

The Euro was on a rough stretch, stretching just below the 1.14 handle before shooting higher at the NFP release.

The Pair is currently up 1.32% on the session – Watch for the reactions at the highs of the 4H downwards channel.

Levels to place on your charts:

Resistance Levels

• 1.16 Imminent Resistance/Pivot
• 1.1650 Intermediate Resistance in confluence with 4H MA 200
• Main resistance 1.18

Support Levels

• 1.1470 Pivotal Support
• 1.15 Psychological Level
• 1.1350 to 1.14 Support 2

USDJPY 4H Chart

USD/JPY 4H Chart, August 1, 2025 – Source: TradingView

The biggest reaction of all major pairs was in USDJPY however, currently down 1.70% and down 2.07% at the lows of the day.

The pair is also reacting to the upwards channel that has been formed throughout the latter half of July.

Breaching the immediate pivot zone would send the pair back into its range.

Levels to place on your charts:

Resistance Levels

• 150.00 Main Resistance
• 150.92 last highs
• 151.00 to 152.00 Key Resistance

Support Levels

• Pivot at High of May Range 147.50 to 148.20 (confluence with 4H MA 50)
• 146.00 Pivot turned Support (confluence with 4H MA 200
• 144.00 Support
• 142.00 Main Daily Support

Gold 4H Chart

Gold 4H Chart, August 1, 2025 – Source: TradingView

Gold had been sending some worrying signs right after the FOMC Rate Decision – Rates held higher is typically not supportive for the precious metal.

Having just broken the $3,300 Key level, markets had started to lean more bearish on the Bullion – But this is a key lesson right here: Always be careful of pre-NFP trading, as things tend to get out of whack.

Watch for the reactions at the immediate pivot zone, levels just below:

Resistance Levels

• $3,350 to $3,375 Pivot Zone
• Main Resistance 3,410 to 3,440
• $3,500 All-time Highs

Support Levels

• MA 50 and 200 as immediate Support $3,340
• $3,300 Major Support
• Next Main support 3,250

Nasdaq 4H Chart

Nasdaq 4H Chart, August 1, 2025 – Source: TradingView

The Nasdaq had marked new all-time highs just two sessions ago at 23,732 (CFD, 23,589 on the actual index), as great earnings from the Magnificent 7 kept boosting sentiment.

The Tech-focused index is evolving in an upwards channel and currently visiting its lows.
This is a key level not to break for Bulls – Watch reactions at this trendline.

Levels to place on your chart:

Resistance Levels

• Pivot Zone at 23,150
• 23,500 Resistance Zone
• 23,732 Current All-time highs

Support Levels

• 22,700 Support in confluence with 4H MA 200 and low of Channel
• 22,000 to 22,229 (Jan 2025 previous ATH)
• 21,600 Support

Dow Jones 4H Chart

Dow Jones 4H Chart, August 1, 2025 – Source: TradingView

The Dow Jones had sent some warnings – The 45,143 all-time high wick was met with sharp correction, never a good sign for price discovery (Bulls would prefer a clean break and consolidation above).

This morning actually sent the Dow below its July range, with dip-buyers currently trying to retest the low of the range (43,780).

The action is getting tense, watch for sentiment on Monday.

Levels to place on your chart:

Resistance Levels

• 44,000 Support turned Pivot
• 44,500 Resistance
• All-time high resistance zone around 45,000

Support Levels

• Low of the session 43,327
• 43,000 Main Support Zone
• 42,000 June post-war Support

Safe Trades!

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