EUR/USD refreshes two-week lows sub-1.1750 ahead of NFP
- Yield spread remains USD supportive.
- Eyes on EUR/GBP flows on Brexit headlines.
- US labour market report – key focus.
The EUR/USD pair extended its steady decline in early Europe, now pushing the rates below the mid-point of 1.1750 levels, the lowest levels since Nov. 22.
EUR/USD breaches 50-DMA support of 1.1755
The offered tone around the Euro picked-up pace, after the agreement on the Brexit deal was announced, which knocked-off the GBP/USD pair on ‘Sell the fact’ trading, lifting the buying interest around the US dollar across its main competitors.
The greenback remains broadly bid on the back of the US tax reforms and passage of the funding bill to avert a government shutdown. Moreover, the 10-year US-German yield differential widened to the highest levels since April 12, supporting the upside in the buck. The USD index trades at fresh two-week highs of 93.94, up +0.20% on the day.
Moreover, downbeat Geman trade report also weighed down on the common currency, with the focus now shifting towards the US payrolls data due later in the NA session.
EUR/USD Technical Levels
Karen Jones, Analyst at FXStreet, noted: “EUR/USD is easing slowly lower from the 78.6% retracement at 1.1976, it is on the defensive and weighing on the 55-day ma at 1.1761. A close below the 55-day ma and preferably below 1.1712 the recent low is needed to alleviate immediate upside pressure. The intraday Elliott wave counts are negative and we now look for some further weakness. Below 1.1712 the 21st November low should negate upside pressure and allow for slippage back to the 1.1553 7th November low.”