EUR/USD Forecast: Euro holds above key 1.0760 technical level

EUR/USD staged a rebound after testing 1.0760 support on Thursday.
The pair could face stiff resistance at 1.0820.
Weekly Initial Jobless Claims data from the US will be watched closely ahead of Friday's jobs report.

Eren Sengezer FXStreet

EUR/USD regained its traction and rose toward 1.0800 after falling to the 1.0750 area during the early hours of the European session on Thursday. Technical buyers could show interest in case the pair climbs above 1.0820.

Despite the uninspiring employment-related data releases from the US on Wednesday, the US Dollar continued to outperform its rivals as investors opted to stay away from risk-sensitive assets.

Employment in the US private sector rose by 103,000 in November and fell short of the market expectation of 130,000. Additionally, Unit Labor Costs declined by 1.2% in the third quarter, compared to the market expectation for a decrease of 0.9%.

In the meantime, hawkish comments from Bank of Japan Governor Kazuo Ueda triggered a rally in the Japanese Yen (JPY) early Thursday. The sharp decline seen in the USD/JPY pair suggested that the JPY captured capital outflows out of the USD. Although this development helped EUR/USD edge higher, EUR/JPY also suffered heavy losses and limited EUR/USD's upside.

Later in the day, the US Department of Labor will release the weekly Initial Jobless Claims data. This week's employment data from the US provided fresh signs of cooling in the labor market. A significant increase in the number of first time applications for unemployment benefits could hurt the USD ahead of Friday's highly-anticipated Nonfarm Payrolls data.

EUR/USD Technical Analysis

EUR/USD holds above 1.0760, where the Fibonacci 50% retracement of the latest uptrend and the 200-period Simple Moving Average (SMA) on the four-hour chart are located. On the upside, 1.0800 (psychological level, static level) aligns as interim resistance before 1.0820 (200-day SMA, Fibonacci 38.2% retracement). A daily close above the latter could attract buyers and open the door for another leg higher toward 1.0850 (static level) and 1.0900 (100-period SMA, 50-period SMA, Fibonacci 23.6% retracement).

On the downside, an extended slide toward 1.0700 (psychological level, Fibonacci 61.8% retracement) could be witnessed if 1.0760 support fails.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD remains above nine-day EMA near 1.3650

GBP/USD recovers its recent losses from the previous session, trading around 1.3680 during the European hours on Wednesday. The technical analysis of the daily chart indicates a sustained bullish bias, as the pair trades within an ascending channel pattern.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

S&P 500 at 7,000 is a valuation test, not a liquidity problem

The rebound from last week’s drawdown never quite shook the sense that it was being supported by borrowed conviction. The S&P 500 once again tested near the 7,000 level (6,986 as the high watermark) and failed, despite a macro backdrop that would normally be interpreted as supportive of risk.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.