EUR/USD slips back to 1.0730 ahead of NFP, daily lows

The single currency is intensifying its daily downside on Friday, dragging EUR/USD to test fresh lows in the vicinity of 1.0730.

EUR/USD looks to Payrolls

The pair continues to fade the weekly rally above the 1.0800 handle seen on Thursday, now losing around a cent since the spike to the 1.0830 area.

Spot is retreating for the third session in a row so far today amidst quite a moderate pick up in the demand for the US Dollar, which has retaken the psychological 100.00 handle when gauged by the US Dollar Index.

Data wise in Euroland, final Services PMIs for the month of January have come in on the strong side, while EMU’s Retail Sales have contracted 0.3% on a monthly basis in December vs. a forecasted 0.3% expansion.

Later in the NA session the pair will remain under pressure in light of the release of US Non-farm Payrolls for the last month (175K exp.), December’s Factory Orders, Markit’s Services PMI and the ISM Non-manufacturing. In addition, Chicago Fed Charles Evans (voter, dovish) is also due to speak.

EUR/USD levels to watch

The pair is now losing 0.25% at 1.0732 and a break below 1.0683 (20-day sma) would target 1.0617 (low Jan.30) en route to 1.0597 (55-day sma). On the upside, the initial hurdle sits at 1.0789 (100-day sma) followed by 1.082 (high Feb.2) and then 1.0848 (low Oct.25 2016).