EUR/USD finds support at 1.0800

FXStreet (Edinburgh) - Sellers continue to prevail around the European currency following US Payrolls, now dragging EUR/USD to the 1.0820 area after testing the 1.0800 handle.

EUR/USD intensify the downside

Spot is now trading sharply lower in the wake of stellar US labour market figures, where the economy has created nearly 300K jobs during December, surpassing initial estimates and bettering November’s 252K (revised higher from 211K). In line with expectations, the unemployment rate remained at 5.0% while Average Hourly Earnings rose 2.5% on a yearly basis vs. 2.3% previous.

Spot is thus closing its first week of the year in red figures, albeit managing to keep business above the 1.0800 mark after climbing as high as the 1.0950 area on Monday.

EUR/USD levels to watch

The pair is retreating 0.84% at 1.0843 with the immediate support at 1.0798 (50% Fibo of 1.0538-.1059) followed by 1.0709 (low Jan.5) and finally 1.0538 (low Dec.3). On the other hand, a break above 1.1032 (100-day sma) would target 1.1059 (high Dec.15) en route to 1.1136 (5-month downtrend).

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