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EUR/USD drops further and tests 1.1350 ahead of Powell

  • The pair loses further ground and retreats to 1.1350.
  • The upside in the greenback picks up pace to the 96.60 area.
  • Speech by Fed’s J.Powell next of relevance in the docket.

The selling pressure is now gathering extra steam around the European currency, motivating EUR/USD to recede to daily lows in the mid-1.1300s.

EUR/USD offered on strong NFP, looks to Powell

Spot has fully faded its daily gains to the 1.1420 region seen earlier in the session following a sharp pick up in the demand for the greenback.

In fact, buying pressure quickly emerged in the buck after US Non-farm Payrolls surpassed consensus for the month of December, showing the US economy added 312K jobs despite the uptick in the jobless rate and wage inflation pressure appears to have resumed the upside.

Moving forward, Chief Powell’s speech at the annual meeting of the American Economic Association should keep the Dollar under scrutiny, although today’s Payrolls figures have clearly remove some traction from speculations around the likeliness that the Fed could revise lower/halt its pace of rate hikes.

EUR/USD levels to watch

At the moment, the pair is retreating 0.38% at 1.1349 and a breakdown of 1.1309 (2019 low Jan.2) would target 1.1268 (monthly low Dec.14 2018) en route to 1.1214 (2018 low Nov.12). On the other direction, the initial hurdle is located at 1.1420 (high Jan.4) seconded by 1.1478 (100-day SMA) and finally 1.1547 (high Jan.1).

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