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  • EUR/USD remains on the defensive near 1.08.
  • US Non-farm Payrolls dropped by 701K jobs in March.
  • The jobless rate climbed to 4.4% from 3.5%.

The selling interest around the single currency remains well and sound, with EUR/USD hovering around the 1.0800 neighbourhood in the wake of the US labour market report.

EUR/USD ignores Payrolls, remains offered

EUR/USD keeps the bearish stance unchanged at the end of the week after the US economy lost 701K jobs during last month, missing expectations for a drop of 100K jobs and down from February’s 275K (revised from 272K).

Further data showed the jobless climbed to 4.4% and the critical Average Hourly Earnings – a proxy for inflation via wages – expanded 0.4% MoM and 3.1% over the last twelve months, both prints surprising to the upside.

What to look for around EUR

The rally in EUR/USD appears to have met a tough hurdle in the vicinity 1.1150 so far, sparking the ongoing corrective downside. In the meantime, dynamics around the greenback plus developments from the COVID-19 are expected to keep ruling the price action in the pair. On the macro view, recent better-than-forecasted PMIs in both Germany and the broader Euroland opened the door to some respite in the prevailing downtrend in fundamentals in the region, although the underlying stance still remains well on the negative side and aggravated by recession fears in response to the COVID-19 fallout as well as the probability of the re-emergence of disinflationary trends.

EUR/USD levels to watch

At the moment, the pair is losing 0.60% at 1.0789 and faces the next support at 1.0777 (monthly low Feb.20) seconded by 1.0635 (2020 low Mar.20) and finally 1.0569 (monthly low Apr.10 2017). On the flip side, a break above 1.0964 (38.2% Fibo of the March drop) would target 1.0992 (monthly low Jan.29) en route to 1.1071 (200-day SMA).