EUR/USD advances to daily highs on Payrolls

The nuying pressure around the European currency is now gathering steam following US payrolls, lifting EUR/USD to trade in the upper bound of the range.
EUR/USD bid on NFP
Spot has quickly added to initial gains after the US economy created 156K jobs during August, below consensus at 180K and down from July’s 189K (revised from 209K). Further data showed the unemployment rate ticked higher to 4.4%, missing estimates.

In addition, key average hourly earnings rose at a monthly 0.1% and 2.5% over the last twelve months, b oth prints coming in on the soft side.

Looking ahead, Markit’s manufacturing PMI is next on tap followed by the critical ISM manufacturing and the US consumer sentiment measured by the Reuters/Michigan index.

EUR/USD levels to watch

At the moment, the pair is gaining 0.55% at 1.1974 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 1.2069 (2017 high Aug.29) woudl aim for 1.2100 (psychological handle) and finally 1.2167 (50% Fibo of the 2014-2017 drop).