EUR/USD: Bears target Aug lows of 1.1662 ahead of NFP?

The overnight recovery attempts failed near 1.1715 levels on multiple occasions, leaving EUR/USD highly vulnerable ahead of the all-important US payrolls data due later today.

EUR/USD: A break below 1.1720 opens door for further downside

Monetary policy divergence continues to play a key factor behind the recent declines in EUR/USD, with the Euro heavily battered yesterday, after the ECB Sept meeting minutes showed that the monetary policy should be highly accommodative under all scenarios.

Meanwhile, the pain in EUR/USD was also exacerbated by resurgent USD demand across the board, after the US macro releases bettered expectations once again and added to the increased chances of a Fed rate hike this year. At the time of writing, the USD index is seen refreshing seven-week tops at 93.88 en route 94 handle, while the major prints fresh multi-week lows at 1.1692, down -0.16%.      

Looking ahead, the pair awaits the release of the German factory orders, while the EUR docket remains data-light. Hence, attention shifts towards the US NFP report, which could help extend the rebound in the greenback versus its main rivals.

Why the Dollar Could Rise on Payrolls

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet noted: “The key support remains to be 1.1720, where it bottomed last week, with scope then to extend its decline down to 1.1661, August low, on a break below it. To the upside, selling interest is aligned around 1.1820/30, and seems unlikely the pair could break above the level during the upcoming sessions and ahead of the mentioned US employment report. Support levels: 1.1720 1.1690 1.1660 Resistance levels: 1.1770 1.1825 1.1860.”