EUR/USD drops to lows near 1.1880, NFP eyed

The single currency stays volatile in the second half of the week, now taking EUR/USD to he area of daily lows in the 1.1880/90 band ahead of the European open.

EUR/USD gains capped near 1.1920

After bottoming out in the 1.1820 region on Thursday, spot gained around a cent later in the NA session, although the upside met strong resistance in the 1.1920/25 band, sparking the ongoing squeeze lower.

EUR was hit on Thursday after headlines suggested some ECB officials could be worried about the recent appreciation of the exchange rate. The news poured cold water over expectations of some sort of announcement (taper-related?) regarding the central bank’s monetary conditions at its next meeting on September 7.

in addition, positive prints from EMU’s flash inflation figures for the month of January did little to sustain the European currency, all amidst a generalized pick up in the demand for the greenback.

Data wise today, August’s final manufacturing PMIs in Euroland are unlikely to shake the sentiment, while non-farm payrolls and the ISM manufacturing should grab all the attention across the Atlantic.

EUR/USD levels to watch

At the moment, the pair is losing 0.13% at 1.1894 facing the next down barrier at 1.1875 (10-day sma) followed by 1.1823 (low Aug.31) and finally 1.1818 (21-day sma). On the upside, a break above 1.1923 (high Sep.1) would open the door to 1.2069 (2017 high Aug.29) and finally 1.2167 (50% Fibo of the 2014-2017 drop).