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.