EUR/USD drops to lows near 1.1860 ahead of NFP

EUR/USD is now coming under selling pressure and testing the area of session lows in the vicinity of 1.1860.

EUR/USD attention to payrolls

Spot met sellers after a failed attempt to advanced beyond session tops around 1.1890 seen earlier in the session. In the meantime, cautiousness is expected to pick up ahead of the publication of July’s non-farm payrolls later in the session.

Market consensus expects the US economy to have created more than 180K jobs during last month, although the centre of attention should remain around the performance of wages.

The pair’s broader bullish trend appears well and sound for the time being, although EUR future markets keep pointing to some caution ahead of a potential squeeze lower. Furthermore, current overbought levels in spot plus ‘too fast too much’ appreciation of the European currency could put the ECB in a somewhat ‘uncomfortable’ position in light of the upcoming events including the Jackson Hole Symposium and the ECB meeting in September.

EUR/USD levels to watch

At the moment, the pair is losing 0.01% at 1.1869 facing the next hurdle at 1.1909 (2017 high Aug.2) seconded by 1.2040 (2012 low Jul.24) and then 1.2166 (50% Fibo of the 2014-2017 drop). On the other hand, a breakdown of 1.1773 (10-day sma) would target 1.1735 (38.2% Fibo of the 2014-2017 drop) en route to 1.1611 (low Jul.26).