Recovery Through the Fix Holds Below $1.1800.

Release of better than forecast US employment data provided a boost for risk which allowed EUR/USD to jump back up to $1.1845 but the risk positive reaction was quickly reversed as traders reacted to news that the White House to impose sanctions on HK's leader Lam. The reversal picked up momentum on the break below $1.1800, the rate extending the move to $1.1755 but met demand placed toward $1.1750 (several reports have suggested that $1.1750/20 is a decent dip buy zone, stronger interest below $1.1700, with $1.1748 being the 76.4% retracement of the week's recovery from $1.1696 to Thursday's high of $1.1916). Rate recovered through the fix to $1.1797 but failed to make an appearance back above the figure. Rate drifted off to $1.1767, trading around $1.1774 at writing. Despite the pullback EUR/USD remains favoured, though as many say August is a strange month in FX. Rate is technically overbought and consolidation would relieve this. Resistance remains into $1.1800 ahead of $1.1845/50.