EUR/USD drops to fresh lows near 1.1240 on upbeat Payrolls

• The pair lost further ground accelerates the downside.
• The greenback pushes higher and challenges 97.00.
• US Non-farm Payrolls came in above expectations at 224K.

The offered tone is gathering steam around the euro on Friday and is now forcing EUR/USD to drop and print fresh lows in the vicinity of 1.1240.

EUR/USD retreats further post-NFP

The pair keeps losing ground after the US economy created 224K jobs during June, bettering estimates at 160K and up from May’s 72K (revised from 75K). Additional data showed the unemployment ticked higher to 3.7%, missing consensus.

Furthermore, the critical Average Hourly Earnings – a proxy for wage inflation – expanded at a monthly 0.2% and 3.1% over the last twelve months, both prints a tad lower than forecasts.

EUR/USD levels to watch

At the moment, the pair is retreating 0.30% at 1.1248 and faces the next support at 1.1242 (monthly low Jul.4) followed by 1.1200 (psychological handle) and finally 1.1181 (low Jun.18). On the flip side, a break above 1.1332 (200-day SMA) would target 1.1412 (high Jun.25) en route to 1.1448 (monthly high Mar.20).