EUR/USD drops to fresh lows near 1.0740, NFP eyed
EUR/USD continues to gravitate near the mid-point of 1.07 handle, pouring cold water on every attempt to the upside amid unnerved markets, as we progress towards the US NFP report release.
EUR/USD ignores mixed final services PMI
Currently, the spot trades modestly flat at fresh session lows of 1.0742, retreating from session highs posted at 1.0766 last hour. The main currency pair moves back and forth in a 15-pips narrow, as market remain cautious and refrain from placing any directional bets on EUR/USD heading into the highly-influential US jobs report.
The intraday bias remains to the downside as the US dollar remains better bid, with markets preferring to hold the US currency, while a relief rally in the US treasury yields also keeps the sentiment around the buck underpinned.
The latest leg lower in the spot can be also attributed to a slew of mixed final services PMI reports published from across the Euro area, with the German services activity growth easing for the 2nd straight month in Jan, while the Eurozone PMI came in a tad better.
All eyes remain glued to the US payrolls due later in the
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0814 (8-week high). A break beyond the last, doors will open for a test of 1.0850 (psychological levels) and from there to 1.0875 (Dec tops). On the flip side, the immediate support is placed at 1.0735 (10-DMA) below which 1.0708/02 (100 & 20-DMA) and 1.0681 (Jan 31 low) could be tested.