EUR/USD Around 1.1400, a Typical Range-Play Ahead of NFP?

EUR/USD Around 1.1400, a Typical Range-Play Ahead of NFP?

6 May 2016, 07:22
Roberto Jacobs

EUR/USD Around 1.1400, a Typical Range-Play Ahead of NFP?

As we step into the NFP Friday, traders shift to the side-lines amid increased nervousness, keeping EUR/USD absolutely flat-lined around 1.14 handle.

EUR/USD stalls a 3-day slide

Currently, EUR/USD trades almost unchanged at 1.1405, oscillating in about 25-pips tight range around 1.14 mark. The main currency is seen consolidating the downside and now strives hard to build onto gains above 1.14 handle, thus, bringing an end to its three-day losing streak.

The EUR/USD pair finds support from negative sentiment seen on the Asian equities as tumbling oil prices weighed down on the resource and energy sector stocks. Moreover, adding to the risk-off market profile, a typical cautious scenario before the US jobs data also underpins the safe-haven bids for the euro.

In the day ahead, the major is expected to extend its side-trend in absence of fresh fundamental triggers from the Euro land. Hence, all eyes remain on the main risk event for this week, the US payrolls data due later in the NA session. Markets are expecting a robust 200,000 increase in payrolls coupled with a respectable 0.3% gain in hourly wages. The US employment report will help the Fed on its next Fed rate hike decision.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1464/68 (5-DMA/ daily R1). A break beyond the last, doors will open for a test of 1.1500 (round number). On the flip side, the immediate support is placed at 1.1386/80 (May 5 Low) below which at 1.1351/33 (Apr 29 Low) could be tested.


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