EUR/USD drops further to 1.1060

The selling pressure is now picking up pace around the shared currency, rapidly dragging EUR/USD below the key 200-day sma at 1.1080.

EUR/USD selling continues after Payrolls

Spot has quickly breached the critical 200-day sma around 1.1080 following strong Payrolls figures today (255K), currently testing the 1.1060 region, or fresh multi-day lows.

July’s Non-farm Payrolls results have boosted the greenback, giving renewed oxygen to the likeliness of a September rate hike by the Fed, although the probability (pre-NFP) of such event is still gyrating around 10% when measured by the CME Group’s FedWatch tool.

EUR/USD levels to watch

The pair is now losing 0.60% at 1.1063 facing the initial support at 1.0950 (low Jul.25) followed by 1.0913 (post-Brexit low Jun.24) and finally 1.0820 (low Mar.10). On the flip side, a breakout of 1.1236 (high Aug.2) would open the door to 1.1263 (50% Fibo of the May-June down move) and then 1.1291 (base of the 8-month rising channel).