EUR/USD Inching Higher, Awaits NFP Data for Further Direction

EUR/USD Inching Higher, Awaits NFP Data for Further Direction

The EUR/USD pair rose to a session high of 1.1425, rebounding from its key support around 1.1400 handle as investor now gear up for the release of much awaited US non-farm payrolls data later during the NY session.

US employment report is expected to show that the US economy added over 200,000 jobs during the month of April, which would be enough for markets to extend the near-term recovery witnessed in the greenback. A strong reading would force the pair to extend its near-term corrective move.

The pair is rebounding after three consecutive days of decline from its multi-month high of 1.1616 touched earlier on Tuesday. On Thursday, the pair dropped below April closing high resistance turned support but has managed to hold on to the 1.1400 mark on closing basis and rebound from that important support. Drop back below this key level would be the first signs that bears might be regaining control in the near-term.

Technical levels to watch

From current levels, the bounce of important support could get extended towards 1.1450-55 horizontal resistance. Subsequent momentum above this immediate resistance might attract fresh offers near 1.1500 psychological mark. On a clear break-through 1.1500 handle, the pair seems to resume its prior up-move and head back towards reclaiming 1.1600 round figure mark.

On the flip side, weakness back below 1.1400 mark and a subsequent drop below Thursday's low near 1.1393-90 area is likely to accelerate the fall immediately towards 1.1355-50 confluence support, comprising of 20-day SMA and 23.6% Fibonacci retracement level of 1.0522-1.1616 sharp up-swing. A follow through selling pressure could be expected if the pair fails to hold this confluence support.