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EUR/USD quickly regained the 1.1600 handle and above after bottoming out in the key support area in the 1.1570/60 band.

EUR/USD up on PBoC news, looks to NFP

Spot leapt above the 1.1600 mark, or fresh session tops, after the PBoC adjusted its reserve requirement on FX forwards trading to 20%, according to news agency Bloomberg.

The Chinese central bank aims to keep the currency basically stable, while it will take counter-cyclical measures in order to bring in stability into the FX markets.

The pair rapidly abandoned the area of fresh mutli-week lows near 1.1560 to regain the 1.1600 and beyond, clinching at the same time fresh daily highs. The up move, however, will be put to the test later in light of the publication of July’s Non-farm Payrolls and the ISM Non-manufacturing.

EUR/USD levels to watch

At the moment, the pair is gaining 0.15% at 1.1603 and a breakout of 1.1680 (21-day SMA) would aim for 1.1749 (high Jul.23) and finally 1.1792 (high Jul.9). On the flip side, the next support aligns at 1.1562 (low Aug.3) followed by 1.1527 (low Jun.28) and then 1.1508 (2018 low May 29).