EUR/USD Looking for a Retest of 1.1400 Amid Risk-Aversion
The overnight corrective slide in EUR/USD found some support near 1.1365 region, with the prices now making fresh attempts to conquer 1.14 handle once again.
EUR/USD: US NFP eyed for fresh direction
Currently, EUR/USD trades modestly lower at 1.1375, hovering in a tight range below 1.1390 levels. The main currency pair found fresh impetus from the upbeat German and Euro zone CPI figures, while broad based USD selling on Yellen’s dovish stance on the monetary policy also helped the EUR/USD pair to clinch fresh 2016 highs on Thursday at 1.1412.
The prices are now seen consolidating the heavy gains seen yesterday and navigate in a narrow range below 1.14 barrier as the EUR awaits fresh incentives from a raft of final manufacturing PMIs from across the Euro area economies due later in the session ahead.
However, for the major, the main risk event for today remains the highly influential US non-farm payrolls data due later in the NY session, with focus once again on the wage pressures. Markets are expecting another 205,000 jobs to be added in March. The unemployment rate should hold steady at 4.9% following a series of increases in labour force participation.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1400/12 (round number/ Mar 31 High). A break beyond the last, doors will open for a test of 1.1450/69 (Oct 2015 levels/ daily R2). On the flip side, the immediate support is placed at 1.1350/48 (1h 50-SMA) below which at 1.1322/15 (daily S1/ 5-DMA) could be tested.
(Market News Provided by FXstreet)