EUR/USD remains vulnerable, recovery stalled around 1.1610

The pair exchanges gains with losses in sub-1.1600 levels.
US Non-farm Payrolls missed estimates at 157k in July.
US ISM Non-manufacturing came in below expectations at 55.7.

Pablo Piovano FXStreet

The bearish sentiment around the European currency stays unchanged in Friday, taking EUR/USD to the 1.1585/80 band in the wake of US data releases.

EUR/USD finds support around 1.1560 so far

After a bull run to the 1.1610 area, or daily highs, sellers quickly stepped in and dragged spot back to sub-1.1600 levels, although some decent contention seems to have emerged around 1.1560 for the time being.

EUR remains fragile amidst lack of conviction of bullish attempts, all despite the greenback saw its daily upside potential dented on PBoC headlines and disappointing figures from July’s job creation in the US and lower-than-expected ISM Non-manufacturing as well as Markit’s Services gauge.

Looking ahead, the pair’s near term outlook is expected to remain on the offered side as long as recent peaks in the mid-1.1700s caps the upside. That said, immediate support should emerge in the 1.1527 level ahead of 2018 lows in the 1.1500 neighbourhood.

EUR/USD levels to watch

At the moment, the pair is losing 0.01% at 1.1584 facing immediate contention at 1.1562 (low Aug.3) followed by 1.1527 (low Jun.28) and then 1.1508 (2018 low May 29). On the upside, a breakout of 1.1680 (21-day SMA) would aim for 1.1749 (high Jul.23) and finally 1.1792 (high Jul.9).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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