EUR/USD comes under pressure, makes fresh lows

EUR/USD has continued to retreat from yesterday’s highs, with better-than-expected US private employment data helping to underpin the dollar.

EUR/USD broke below the 1.12 mark and slid to a low of 1.1165 in recent dealings, erasing completely previous day’s gains. At time of writing, the pair was trading at 1.1175, recording a 0.4% loss on the day.

On the data front, services PMIs came in mixed across Europe, while US ISM non-manufacturing PMI was slightly below expectations (55.5 vs 56.0 exp). Separated data showed, US private sector added more jobs than expected in July, with ADP reporting 179K job gain vs 170K of forecast.

Still, main focus remains on BoE decision Thursday and the nonfarm payrolls report on Friday, which is expected to show US economy created 180K new jobs in July.

EUR/USD levels to watch

In terms of technical levels, next supports could be found at 1.1154 (50-day SMA), 1.1076/72 (200-day SMA/Jul 29 low) and 1.1052 (Jul 28 low). On the flip side, short-term resistances are seen at 1.1235 (100-day SMA), 1.1300 (psychological level) and the 1.1340/50 zone (Jul 21 & 22 highs).