EUR/USD fades NFP-led spike, tumbles to 1.19 mark on ECB headlines

The EUR/USD pair faded disappointing US jobs report-led knee-jerk spike and quickly retreated around 85-90 pips from session tops.

The pair took a sharp U-turn after a Bloomberg report said that ECB wants extreme prudence on policy and communication. The central bank reportedly sees chance that QE plan will not be fully ready until December, dampening expectations of a possible tapering at the next week's meeting and was seen weighing heavily on the shared currency. 

   •  ECB reportedly sees chance that QE plan wont be ‘fully ready’ until Dec. - BBG

Meanwhile, the post-NFP recovery in the US Treasury bond yields helped the US Dollar to recover majority of its lost ground and further collaborated to the pair's sharp reversal from 1.1980 level. 

Today's US economic docket also features the release of ISM manufacturing PMI, but is unlikely to provide any meaningful impetus for short-term traders.

Technical levels to watch

A follow through weakness below 1.1880-75 area is likely to accelerate the fall towards 1.1840-35 zone before the pair eventually drops to the 1.1800 handle. 

On the upside, 1.1915-20 area now becomes immediate resistance, above which the pair is likely to make a fresh move towards 1.1975-80 hurdle ahead of the key 1.20 psychological mark.