EUR/USD fades the spike, back to 1.1070

The common currency has quickly retraced the spike to the boundaries of 1.1100 the figure vs. the greenback, with EUR/USD now back to the 1.1080/70 band.

EUR/USD upside lacked of follow through

Spot has now returned to red figures amidst a tepid buying bias around the dollar after todays mixed results in the US docket. In fact, advanced Q2 Unit Labor Costs rose more than expected 2.0% while Non-farm Productivity has contracted 0.5% vs. a forecasted 0.4% gain for the same period.

The pair thus keeps the trade within the recent range, looking to consolidate around the 1.1080 area following last week’s strong drop post-Payrolls.

EUR/USD levels to watch

The pair is now losing 0.06% at 1.1079 facing the immediate support at 1.1043 (low Aug.5) followed by 1.0950 (low Jul.25) and then 1.0913 (post-Brexit low Jun.24). On the flip side, a breakout of 1.1150 (55-day sma) would open the door to 1.1236 (high Aug.2) and finally 1.1263 (50% Fibo of the May-June down move).