EUR/USD Extends Correction above 1.1150, NFP in Focus

EUR/USD Extends Correction above 1.1150, NFP in Focus

3 June 2016, 07:37
Roberto Jacobs
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EUR/USD Extends Correction above 1.1150, NFP in Focus

The EUR/USD pair extends its recovering mode into early Europe, reversing a part of ECB-led slide witnessed yesterday, while the main risk event for today remains the US employment data due later in the NY session.

EUR/USD tests hourly 200-SMA at 1.1159

Currently, EUR/USD trades modestly flat at 1.1151, extending recovery from 1.1142, session lows. The main currency pair attempts a tepid-bounce this Friday as dust settles over the ECB aftermath, while markets resort to cover their EUR shorts as we head towards the highly influential US NFP data, which is likely to trigger massive volatility across the financial markets.

On Thursday, the European Central Bank (ECB) left monetary policy unchanged as the main refinancing rate stayed at 0.0%, while the deposit rate was kept at -0.4%. While the ECB Chief noted during his presser, consumer price growth would remain low or negative for several months ahead. Draghi’s comments were the main catalysts behind the sell-off in EUR/USD from above 1.12 handle.

Data-wise, the EUR calendar holds a series of services PMI reports from the Euro area, followed by Eurozone retail sales. While the US jobs report is expected to emerge the main market moving event this Friday.  

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1210 (20 & 100-DMA). A break beyond the last, doors will open for a test of 1.1250 (round number) On the flip side, the immediate support is placed at 1.1126/24 (May 25 Low/ Daily S1) below which at 1.1099 (200-DMA) could be tested.


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