EUR/USD drops to two-month low ahead of non-farm payrolls release

EUR/USD pair printed a two-month low of 1.1118 in Asia as US dollar stayed solidly bid amid Sterling crash and on speculation of a stronger-than-expected non-farm payrolls release.

Focus on NFP

The payrolls data is expected to show the US economy added 172K jobs in September compared to 151K job additions seen in August. The lead indicators- employment sub indices in PMI readings, US consumer confidence, jobless claims – all point to a possibility of a bolow out NFP figure.

Also note that August figure could be revised higher as well. Meanwhile, traders would also keep an eye on the wage growth numbers.

EUR/USD Technical Levels

The pair was last seen trading around 1.1125. A break below 1.11 could yield a test of 1.1046 (Aug 5 low), under which losses could be extended to 1.10 (zero figure). On the other hand, a breach of resistance at 1.1138 (Oct 4 low) would expose 200-DMA level of 1.1165. Next major hurdle is seen at 1.12 handle.