EUR/USD plummets below 1.1800, fresh lows

The selling pressure is now picking up extra pace around the single currency, forcing EUR/USD to trade in sub-1.1800 levels, or fresh lows.

EUR/USD weaker on USD-buying

Fresh buyers around the buck plus stops being triggered are dragging the pair to levels below the 1.1800 handle, as market participants continue to adjust to the recently published US non farm payrolls.

Recall that the US economy created more jobs than initially estimated in July (209K vs. 183K exp.) while the June’s reading has been revised higher. Further results also saw average hourly earnings gaining 2.5% on an annualized basis vs. 2.4% forecasted.

The solid report from the US labour market has revived speculations of further tightening by the Federal Reserve at any point in H2, with a probability of the third rate hike in December now at 47% (from yesterday’s 42.8%) according to CME Group’s FedWatch tool.

Spot is now testing the key 1.1770/80 band, where sit the 10-day sma, the 200-week sma and daily highs seen on July 27^th.

EUR/USD levels to watch

At the moment, the pair is losing 0.80% at 1.1775 and a breakdown of 1.1735 (38.2% Fibo of the 2014-2017 drop) would aim for 1.1618 (21-day sma) and finally 1.1611 (low Jul.26). On the flip side, the immediate resistance aligns 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).