FxWirePro:EUR/USD trades below 1.1600 level, markets eye US non farm payroll

EUR/USD is trading lower and has broken major support 1.1600. The pair hits low of 1.15615 and has shown a minor recovery. The Fed optimism and escalating trade war between US and China is supporting US dollar. The Eurozone services PMI fell to 54.2 in Jul compared to forecast of 54.4. Markets eye US non farm payroll data for further direction. US economy is expected to add 190k new jobs in the month of Jul and wage growth to show a minor jump to 2.7% y/y.

US jobless claims has shown a minor jump by 1000 to a seasonally adjusted 218000 for week ended Jul 28.

US 10 year bond yield has broken 3% and hits 3.160% highest in six weeks. US has planned to raise the tariffs from previous 10% to 25% on $200 billion worth of Chinese import.

EUR/USD’s near term support is around 1.155 and any convincing break below will drag the pair to next level till 1.1500.Any break below 1.1500 confirms minor weakness and decline till 1.1400/1.13600 is likely.
 
On the higher side, near term resistance is around 1.1645 (7- day MA) and any break above will take the pair to next level till 1.1680 (20- day MA)/1.1750/1.1800.

It is good to sell on rallies around 1.1645-50 with SL around 1.1685 for the TP of 1.1500.