EUR/USD refreshes lows near 1.1960 ahead of US payrolls


  • Recovery capped by dismal Euro-area services PMIs and retail sales data.
  • A test of 1.1938 inevitable ahead of the US labor market report.

The EUR/USD pair stalled its recovery attempt near 1.1980 levels and came under renewed selling pressure following the releases of downbeat Eurozone services PMI and retail sales data.

The spot now looks set to test the four-month lows of 1.1938, as the Euro remains undermined amid slowdown in the Euro area manufacturing and services sector activity while the US dollar continues to ride higher amid signs of strengthening US economy and rising inflation expectations.

With the Eurozone PMIs and retail sales data out of the way, ‘the keenly watched US non-farm payrolls report will be the main feature from today's economic docket and gather all of the market attention. The US economy is anticipated to have added 194K new jobs in April and the unemployment rate is seen falling to 4.0%. The key focus, however, would be on the Average Hourly earnings data, expected to show a modest 0.2% m-o-m rise,” Haresh Menghani, FXStreet’s Analyst notes.

EUR/USD levels to watch

According to Slobodan Drvenica at Windsor Brokers, “Signals from oversold conditions have been so far ignored, as daily MA’s infirm bearish setup and south-heading 14-d momentum keeps bearish bias intact. A firm break below 1.1936 would open way for acceleration towards 1.1790 (Fibo 76.4% of 1.1553/1.2555), with upbeat US jobs data today needed to confirm scenario.”

“Conversely, sustained break above 200SMA would ease the immediate bearish pressure, while stronger reversal signal requires a lift and close above falling 10SMA (1.2080) and Fibo 38.2% of 1.2413/1.1937 fall (1.2119). Res: 1.2000; 1.2015; 1.2050; 1.2080. Sup: 1.1936; 1.1915; 1.1900; 1.1854,”Slobodan adds.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD pulls away from two-week highs, steadies near mid-1.10s

EUR/USD lost its momentum before testing 1.11 as surging US Treasury bond yields and upbeat macroeconomic data from the US helped USD gather strength.

EUR/USD News

GBP/USD fails to hold above 1.29 on broad USD recovery

GBP/USD erased more than 70 pips in American trading hours and turned red below 1.2900 pressured by the broad-based USD strength that saw the US Dollar Index rebound to 98.

GBP/USD News

USD/JPY edges higher toward 108.70 as 10-year T-bond yield extends rally

The USD/JPY pair rose modestly in the last hour boosted by the improving market sentiment and was last seen trading at 108.65, adding 0.05% on a daily basis.

USD/JPY News

Gold: Remains vulnerable below 100-day SMA

Gold seems to have stalled its recent corrective bounce from three-month lows and witnessed a modest pullback from previous support, now turned resistance near 100-day SMA.

Gold News

Slow-motion Bitcoin battering continues amid interesting Tron chart, Pomp's PayPal comment

Bitcoin plunges below $8,00, dragging cryptos down. Thursday's trading is marked by a sea of red, without a single downward driver, but with an accumulation of downbeat developments. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures