EUR/USD breaks through near-term trading range, now awaits NFP

The EUR/USD pair extended its weakness below 200-day SMA and finally seems to have broken out of nearly one month old trading range. 

Currently trading just above 1.1100 handle, the pair dropped to nearly two-month low amid broad based US Dollar strength, primarily led by a massive sell-off in the GBP/USD major that suffered its biggest slide since the historic Brexit referendum. 

Even a stronger-than-expected German industrial production data failed to provide any respite for bulls and the pair broke below 1.1125-20 important horizontal support held since late August. Following a 1.5% contraction in July, German industrial production for August witnessed a growth of 2.5% m-o-m and surpassed consensus estimates pointing to a 0.8% growth.

Investors, however, would remain focused on today's release of monthly employment details from the US (NFP), which if surprises on the upside should trigger a fresh leg of up-move for the greenback. 

Even from technical perspective, the pair has broken below an important support and is also sustaining weakness below the very important 200-day SMA, hence remains vulnerable to further downslide in the near-term.

Technical levels to watch

Below 1.1100 handle, the pair seems to immediately slide to 1.1080-75 horizontal support below which a fresh bout of selling pressure should continue dragging the pair initially towards 1.1000 psychological mark and eventually towards its next major support near 1.0970 level.

On the upside, any recovery attempt above 1.1125-20, support break now turned resistance, might now confront resistance near 1.1150 region. Any further up-move beyond 1.1150 might now be capped at 200-day SMA near 1.1165-70 region.