EUR/USD stays near 2017 tops, around 1.1270

The payrolls-led sell off in the greenback has lifted EUR/USD to fresh 2017 tops around 1.1280, opening the door at the same time for a potential test of the key barrier at 1.1300 the figure.

EUR/USD bid after US data

The pair has quickly climbed to the vicinity of 1.1280 in response to disappointing results from the US labour market during May, showing the economy adding less jobs than initially expected, declining jobless rate and stagnant wage inflation, all weighing heavily on the buck.

Gauged by the US Dollar Index, the greenback plummeted to lows in the 96.70/60 band in the wake of the release, now shifting all the attention to the FOMC meeting later in the month, when markets expect the Federal Reserve to tighten its monetary policy.

According to Reuters’ FedWatch, the probability of higher rates to be announced this month is at just above 91.2% from above 95% pre-payrolls, still very high and somewhat unaffected by May’s figures.

EUR/USD levels to watch

At the moment, the pair is gaining 0.55% at 1.1275 and a breakout of 1.1282 (2017 high Jun.2) would target 1.1300 (high Nov.9 2016) en route to 1.1367 (high Aug.18 2016). On the flip side, the immediate support lines up at 1.1165 (low May 31) followed by 1.1108 (low May 30) and finally 1.1073 (76.4% Fibo of 1.1300-1.0339).