EUR/USD finds support near 1.1180, NFP eyed

The daily decline in EUR/USD seems to have found some decent support in the 1.1180 area for the time being.

EUR/USD looks to US releases, Fedspeak

The pair has reverted yesterday’s gains and it has returned to sub-1.1200 levels against the backdrop of a solid demand for the buck.

USD remains well supported by recent positive results from the US docket, with the exception of Wednesday’s disappointment from the ADP figures. In the same line, expectations of a Fed’s rate hike at the December meeting remain a key source of support for the dollar, with CME Group’s FedWatch tool signaling the probability of higher rates by year end at nearly 52% based on Fed Funds futures prices.

In the data space, US Initial Claims are due later in the session, ahead of tomorrow’s Non-farm Payrolls, Unemployment Rate and subsequent Fedspeak.

In addition, market participants will closely follow the press conference by President M.Draghi at the IMF/World Bank Forum in Washington on Saturday, especially after rumours of a potential QE taper by the central bank have jolted spot on Tuesday.

EUR/USD levels to watch

The pair is now losing 0.16% at 1.1187 and a break below 1.1167 (200-day sma) would target 1.1095 (2014-2016 support line) en route to 1.1043 (low Aug.5). On the other hand, the next up barrier is located at 1.1263 (resistance line off 2016 high) followed by 1.1279 (high Sep.26) and finally 1.1329 (high Sep.8).