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EUR/USD tests daily lows near 1.1280 post-NFP

  • EUR/USD trims gains further and drops to 1.1280.
  • US Non-farm Payrolls rose by 2.5 million jobs in May.
  • The jobless rate climbed to 13.3%, beating estimates.

The renewed selling interest is picking up pace around the single currency on Friday, with EUR/USD hovering around the 1.1380 area in the wake of the US labour market report.

EUR/USD offered on upbeat Payrolls

EUR/USD keeps the daily correction unchanged at the end of the week after the US economy added around 2.5 million jobs during last month, surpassing expectations for a drop of 8 million jobs and rebounding at the same time from April's nearly 20.7 million jobs loss.

Further data showed the unemployment rate improved a tad to 13.3% (from 14.7%) and the Average Hourly Earnings contracted 1.0% MoM and expanded 6.7% over the last twelve months.

What to look for around EUR

EUR/USD has clinched fresh tops near the 1.1400 mark on Friday against the backdrop of increasing appetite for riskier assets. The rally in the euro remains well sustained by the gradual and relentless re-opening of economies in the Old Continent and by the latest round of extra stimulus announced by the ECB at its meeting on Thursday. On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.

EUR/USD levels to watch

At the moment, the pair is losing 0.27% at 1.1306 and a breakout of 1.1383 (weekly/monthly high Jun.5) would target 1.1391 (monthly high Jun.13 2019) en route to 1.1412 (monthly high Jun.25 2019). On the downside, the immediate support aligns at 1.1186 (61.8% Fibo of the 2017-2018 rally) seconded by 1.1014 (200-day SMA) and finally 1.0926 (55-day SMA).

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